SpiceJet shares surge 10% as Ajay Singh checks in

Stocks of SpiceJet on Friday surged nearly 10 per cent after the company returned to original promoter Ajay Singh for its revival in a multi-layered deal worth up to Rs 1,500 crore (Rs 15 billion).

Shares of the cash-strapped firm rallied 9.92 per cent to Rs 20.50 -- its highest trading permissible limit for the day on the Bombay Stock Exchange.

Sun TV Network also jumped 12.87 per cent to Rs 423.90. Cash-strapped SpiceJet's original promoter Ajay Singh returned to the airline with a long-term plan entailing an investment of up to Rs 1,500 crore, as Maran family agreed to cede control with transfer of over 53 per cent stake in the carrier.

Singh, who is in talks to rope in more investors including foreign entities, would get 53.48 per cent stake, currently worth about Rs 500 crore, in the airline from the

Maran family as part of the deal approved by the SpiceJet board on Thursday.

Kalanithi Maran-led Sun Group would also infuse Rs 80 crore in the loss-making airline following conversion of their warrants, which would give them a 10 per cent minority stake.

Marans would remain invested with this stake in the airline, which they acquired over four years ago, as a public shareholder although they would cease to be its promoters.

"The airline has given a revival and restructuring plan to the Civil Aviation Ministry for change in control, which has to be cleared by it. Once they do it, we will execute the revival plan," Singh told PTI.