Shares of SpiceJet surged more than 17 per cent in morning trade on Friday after fair trade watchdog CCI approved original promoter Ajay Singh's plan to acquire controlling stake in the carrier.
Under the revival plan, Singh would infuse Rs 1,500 crore (Rs 15 billion) into the carrier after acquiring over 58 per cent stake from outgoing promoters, Marans.
The scrip, listed on the BSE, jumped 17.79 per cent to Rs 23.50. It had opened at Rs 22.80 and touched an intra-day high of Rs 23.50.
At the current price, the carrier has a market valuation of more than Rs 1,400 crore (Rs 14 billion).
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Shares of the company had closed at Rs 19.95 on Thursday. In a regulatory filing today, SpiceJet said Competition Commission of India (CCI) has approved Singh's proposal to acquire majority stake in the carrier.
"The company has been informed by Ajay Singh that the CCI has approved the proposed combination and acquisition of entire shareholding of Kalanithi Maran and Kal Airways Pvt Ltd (existing promoters) aggregating to 350,428,758 equity shares (58.46 per cent) by Ajay Singh, in terms of the Competition Act, 2002," the filing said.
Ajay Singh had on Thursday said that Marans are expected to transfer their entire stake of over 58 per cent to him in next two days.
"A tranche of Rs 400 crore (Rs 4 billion) will be infused into SpiceJet by next Monday or Tuesday," Singh said.
Singh is now awaiting nod from the Home Ministry for his appointment as Director on the Board of SpiceJet. The deal has already been cleared by the Civil Aviation Ministry.
In late January, SpiceJet Board had approved transfer of Maran family's entire 58.46 per cent existing stake to Singh, while the company would raise Rs 1,500 crore through issuance of fresh securities.
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