Spicejet Denies Stake Sale Reports

The budget airline SpiceJet stock has taken wing in the last month over a buyout buzz. Tatas, Anil Ambani and even Vijay Mallya may be in the ring for buying into the airline but the Spicejet management says no stake sale is on the anvil. The buzz about a takeover of Spicejet is getting louder. But suddenly there is intense speculation about these two men entering the fray for SpiceJet. Anil Ambani might want to fly into the aviation space and Vijay Mallya could make a bid to consolidate his market share after acquiring Deccan.

The Spicejet management however denies all talks of a stake sale but despite these denials the Spicejet stock has simply taken off, going up by more than 64 per cent in one month. The Spicejet stock touched a 52 week high of Rs 104.8 while closing down Rs 92.60 on Jan 9. The Spicejet management claims that the higher share price is not because of takeover talks but because the airline has been doing well. The company is expecting to announce a profitable quarter as ticket prices are on the rise which will help bottom lines. However, Spice''s promoters may be looking for an exit at a time when valuations are high. Ajay Singh one of the promoters is already investing huge amounts of money into his automobile business and the other promoters the Kansagra family is betting big on oil.