SpiceJet promoter Ajay Singh is considering a stake sale, say sources

SpiceJet promoter Ajay Singh is exploring a possibility of a partial stake sale in the airline, according to people in the know. Singh currently holds a majority 60 percent in the airline.

The SpiceJet stock rallied almost 6 percent as markets opened on Wednesday on the back of this news.

It is learnt that SpiceJet is in talks with a Middle Eastern carrier for the possible stake sale. Talks are ongoing with a large Indian conglomerate, too.

"The company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures in accordance with applicable regulations," a SpiceJet spokesperson said.

The SpiceJet stock rallied 5 percent on Tuesday, too, after it announced it had entered into an agreement with the Airports Authority of India (AAI) and cleared all outstanding principal dues of the airport operator.

"With this, SpiceJet will no longer remain on 'cash and carry' at AAI-run airports across the country and will revert to advance payment mechanism for daily flight operations," the airline's statement noted.

The Centre-run AAI had put SpiceJet on a 'cash and carry' basis in 2020 as the carrier could not clear its previous dues. In the 'cash and carry' model, the airline had to make daily payments to the AAI for various charges — navigation, landing, parking, and others — to operate flights.

Earlier in July-end, the aviation regulator DGCA ordered SpiceJet to operate a maximum 50 percent of its flights, which were approved for the summer schedule, for eight weeks following at least eight incidents of technical malfunction in its aircraft since June 19.