Spicejet takes off again

Spicejet is doing pretty well this morning. Opening higher, the stock is currently at its intra day high point at Rs.19.50, up over 8%. The mood on the counter has turned around from pessimism to some optimism.

This optimism stems from hope that the company it might get ‘rescued’ after all. There is unconfirmed news in the media that along with former promoter of the company, Ajay Singh, a consortium of FIIs will be submitting a revival proposal to the ministry of civil aviation today. The news doing the rounds is that Ajay Singh, along with JP Morgan will buy out Kalanithi Maran’s entire stake. Maran currently owns a 58% stake in the company.

This money, around Rs.1200 crore is expected to come in within a month’s time and Spicejet has already cleared the due of oil marketing companies.