Millennium Post

SpiceJet shares fly 20% on Ajay Singh effect

Ajay Singh, one of the company's original promoters, met Civil Aviation Minister Ashok Gajapathi Raju on Thursday in an effort to bring the troubled carrier out of crisis.

Cheering the move, shares of the beleaguered carrier soared 19.70 per cent to settle at Rs 15.80, the upper circuit limit of the stock on the Bombay Stock Exchange (BSE).

On the volume front, 296.87 lakh shares of the company changed hands at the Bombay Stock Exchange during the day.

"They (SpiceJet) have told the ministry that they are likely to get an investor. The airline does not have a safety issue (but) it is going through financial stress. They are trying to address their financial woes," Raju had said after the meeting on late Thursday evening.

He said Singh shared some "thoughts" about the no-frill carrier's recapitalisation plans though these were not concrete plans as yet.

SpiceJet has debts of Rs 1,600 crore as on December 5 which had prompted aviation regulator DGCA to put them under heightened surveillance.

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