SpiceJet jumps on hopes for foreign investment

Shares in SpiceJet Ltd gained 3.9 per cent after earlier rising as much as 8.5 per cent on continued hopes the carrier could attract foreign investments.

Aviation Minister Ajit Singh, answering a question on Etihad's proposed deal to buy a minority stake in Jet Airways India Ltd, said foreign direct investment (FDI) in local airlines generally is a "welcome step," as the sector battles with stretched financials and banks unwilling to lend.

Mr Singh added that other domestic airlines were in talks with potential investors, and named SpiceJet and unlisted GoAir. He later clarified he was referring to media reports on the companies, and hence not on direct knowledge.

SpiceJet had said in January it received some interest from potential investors, but it would be premature to discuss the possibility of any concrete investments.

Copyright: Thomson Reuters 2013