SpiceJet shares up as various firms look for stake

July 9th, 2008 - 3:56 pm ICT by IANS  


Mumbai, July 9 (IANS) SpiceJet shares rose by over 15 percent midday Wednesday following reports that various firms were eyeing a stake in the carrier. SpiceJet shares were trading at Rs.32.40, up 8.9 percent, after touching a high of Rs.34.45.

A report in the online edition of financial newspaper Business Standard Wednesday said global investment banking and securities firm Goldman Sachs has joined the race to acquire SpiceJet, a New Delhi-based low cost carrier.

However, sources familiar with the development said negotiations are also on way with liquor baron Vijay Mallya and US-based distress fund Wilbur Ross.

“In a few days, we will have a clear picture, we are looking at various options as of now,” SpiceJet executive chairman Siddhant Sharma told IANS.

He declined to talk about the negotiations.

At present, the carrier has 38.5 percent of foreign holding, which means foreign investors such as Ross and Goldman Sachs will buy a little above 10 percent as the current foreign direct investment limit in civil aviation is of 49 percent.

Earlier on, SpiceJet had appointed merchant banker NM Rothschild for suggestions in raising funds.

SpiceJet, which has over 10 percent market share, is looking at an investment of at least $100 million to stay afloat and fund fleet expansion.

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