India’s IndiGo co-founder Rakesh Gangwal is in talks to buy a “sizable” stake in troubled domestic airline SpiceJet, ET Now reported on Friday, citing sources.
The news sent shares of SpiceJet up as much as 20%.
Gangwal and his wife Shobha Gangwal hold 13.23% and 2.99%, respectively, in IndiGo operator InterGlobe Aviation, as of June-end, while their Chinkerpoo Family Trust holds a 13.5% stake, according to exchange data.
Cash-strapped SpiceJet, which is “struggling to stay afloat”, has been scrambling to raise funds and restore operations for about a fourth of its fleet that has been grounded amid fierce competition in the sector.
SpiceJet, whose market share slid to 4.4% as of September-end from 7.3% at the end of January, did not immediately respond to Reuters’ request for comment on the report.
IndiGo shares were up 0.9% in afternoon trading on Friday.
First Published: Oct 13 2023 | 3:32 PM IST