Spicejet takes off!

Shares of the cash-strapped low cost carrier Spicejet are soaring high coupled with strong volumes this morning, up 15% or by Rs. 2.95, with current market price being Rs. 22.90 on BSE. Total traded quantity of over 84 lakh shares, in the first 90 minutes of trade, is more than double the two-week average daily traded quantity of 32 lakh shares.

Competition Commission of India (CCI) has approved the change in control for the troubled airline. As per the newly-approved proposal, original promoter Ajay Singh will acquire entire 58.46% shareholding of the existing promoters - Kalanithi Maran and Kal Airways Private Limited - aggregating 35.04 crore equity shares. Thus, Ajay Singh will acquire both majority ownership and management control of the troubled airline.

Also, as part of the revival plan, Spicejet will see a capital infusion of Rs. 1,500 crore with a new management taking charge, to steer it out of troubled waters. Of this, Rs. 400 crore will be infused early next week.