NEW DELHI: IndiGo co-founder Rakesh Gangwal is reportedly in talks to buy a stake in cash-starved airline SpiceJet. The airline, however, is yet to confirm the development but the news sent its shares up as much as 20%. SpiceJet shares hit a fresh 52-week of Rs 43.82 on Friday and later closed 19.39% higher at 43.60.
The news of Gangwal investing in SpiceJet comes as the airline is grappling with financial challenges and is actively looking at fresh funding to support its growth plans. The airline recently told the NCLT that them and aircraft lessor Celestial Aviation Services Ltd are in the advanced stages of a settlement. The airline also needs to clear dues to a bunch of other lessors besides having financial obligations towards former owner Kalanithi Maran over dues of Rs 397 crore.
SpiceJet is facing a legal challenge from Credit Suisse over a payment default. The talks of investment also come as Gangwal is liquidating his stake in IndiGo. Gangwal held 13.23% stake in InterGlobe Aviation Ltd at the end of June quarter while his wife Shobha Gangwal held a 2.99% stakes in InterGlobe Aviation, the promoter company of IndiGo. The Chinkerpoo Family Trust, which belongs to them, held a 13.5% stake.
After an infamous tussle with co-founder Rahul Bhatia, Gangwal had last year said that he would cut his stake in IndiGo over a period of five years. His side has already reduced their stake after selling shares in a couple of bulk deals.