SpiceJet to Get Rs 400 Crore Next Week, Shares Soar 20%

Shares of SpiceJet soared 20 per cent to Rs 23.90 after Competition Commission cleared co-founder Ajay Singh's proposal to acquire controlling stake in the cash-strapped airline.

 

Ajay Singh told NDTV that the company will receive total of Rs 1,500 crore in funding in three tranches. The first tranche of Rs 400 crore is likely to come in by Tuesday and part of which would be paid to clear outstanding dues of the airline, he added. 

 

"We are working out with creditors on payment plans and we have got a lot of support from our creditors and stakeholders and as of now there is no urgency to pay money," added Mr Singh.

 

Meanwhile, he said transfer of shares from Marans would be completed in 1-2 days.

 

Ajay Singh said that the company going ahead will focus increasing its operational efficiency. 

 

Commenting upon the just-concluded sale of cheap tickets Mr Singh said, "The sale model won't get us into trouble as sales are integral part of a low-cost airline. A lot of these tickets are usually sold for long distances from a future perspective and these tickets typically would otherwise remain unsold."

 

The SpiceJet co-founder expects Finance Minister Arun Jaitley to lower taxes in the upcoming Budget and also hoped that aviation sector gets status of infrastructure sector.