Millennium Post

SpiceJet skids 12% in 12 days despite Jhunjhunwala check-in

RARE Enterprises of Jhunjhunwala, who has long commanded a reputation in the Indian stock market of buying small stakes in companies with strong growth potential in terms of share price appreciation, purchased 75 lakh shares of SpiceJet for Rs 13.4 crore through open market route on 28 November.

The shares have been purchased at a time when the no-frills carrier is facing tough business conditions and the situation has only worsened in recent days with cancellation of 70-80 flights a day and a total of over 1,800 flights having been cancelled for the current month alone. As a result, Spicejet shares have plunged by 12.5 per cent since 28 November, despite a rise of 2.62 per cent in Tuesday’s trading session. The stock closed at Rs 15.65, against a price of Rs 17.88 a piece at which Jhunjhunwala had bought shares worth a 1.4 per cent stake. On his purchase day, the SpiceJet scrip surged 18.36 per cent.

The company has said that "a few parties have approached us and evinced interest in making the company has been exploring various options for raising fresh capital". It had also said last month that deliberations with prospective investors were "at an exploratory and preliminary stage". But, there has been no clarity on the potential investors.
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