SpiceJet stock gains 7 per cent
Sun Group today said its aviation venture SpiceJet needs capital for expansion and would explore options including equity contribution from existing shareholders and raising debt, but promoters have no plans to sell their shares.
Reacting to the news the shares of the company, jumped 8.44 per cent to touch an intra-day high of Rs 37.90 on the BSE. The stock, however, lost some ground and settled for the day at Rs 37.40, higher by 7.01 per cent on the BSE.
In a single trading session, the stock has added Rs 151 crore to its market worth. The market capitalisation of the company has improved from Rs 1,660 crore yesterday to Rs 1,811 crore today fuelled by the rally in the stock.
Sun Group Chief Kalanithi Maran and his wife Kavery Maran have resigned from one of the promoter entities of SpiceJet, triggering speculations about a possible sale of Maran family's majority stake in the air carrier.
The group has, however, denied any plans for promoters' stake sale in SpiceJet, saying it could consider various other options to raise capital to finance fleet expansion plans.
"We certainly need funds for fleet expansion and whenever there is an attractive opportunity (for partial stake sale), we will definitely look at it, but there is nothing on cards as of now," Sun Group CFO S L Narayanan said.
Meanwhile, stocks of other airline stocks also witnessed good momentum ahead of the Winter Session of Parliament, which starts from tomorrow.
Jet Airways today ended the day at Rs 451.50 apiece, higher by 9.20 per cent. The stock had hit a 52-week high during the day.