Friday, October 13, 2023

IndiGo co-founder Rakesh Gangwal may buy ‘sizable’ stake in SpiceJet, says report

Rakesh Gangwal, co-founder of India’s IndiGo, is reportedly in negotiations to acquire a significant stake in the financially troubled domestic airline, SpiceJet, according to sources cited by ET Now. This news has driven up SpiceJet’s stock price by as much as 20%.

As of June-end, Rakesh Gangwal and his wife Shobha Gangwal owned 13.23% and 2.99% stakes in IndiGo’s operator, InterGlobe Aviation, while their Chinkerpoo Family Trust held a 13.5% stake, as per exchange data.

SpiceJet, grappling with financial difficulties and striving to revive about a quarter of its grounded fleet amid intense competition in the aviation sector, has been seeking ways to secure funding.

As of September-end, SpiceJet’s market share had decreased from 7.3% at the end of January to 4.4%. SpiceJet have not responded to the report at this time. IndiGo’s shares saw a modest 0.9% increase in afternoon trading on Friday.

13/10/2023 Financial Express

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