SpiceJet shares pare early gains, close 2.5% higher on bourses

Mumbai, Jun 8: Trimming most of its initial gains in an overall weak broader market, shares of SpiceJet ended 2.5 per cent higher today as its chairman and main promoter Ajay Singh will invest more money in the airline for fleet expansion.

After climbing 8.26 per cent to Rs 19.65 during intra-day trading on the BSE, shares of SpiceJet finally closed with a gain of 2.48 per cent at Rs 18.60. On the volume front, 30.77 lakh shares of the company were traded at the BSE during the day.

"SpiceJet rose over 8 per cent over the day after its chairman and promoter Ajay Singh's assurance of infusing more funds into the airline for fleet expansion," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio Ltd.

With fortunes of SpiceJet on an "upswing again", its chairman and main promoter Ajay Singh will look at putting in more money for fleet expansion, even as he continues to explore various investment options.

Singh, the original co-founder, has so far invested about Rs 800 crore into the no-frills airline since he took back the reins last December after a major crisis had hit the company.

"We were at a phase where the airline was actually shut down... The focus is now on getting back consumer confidence and we will work on that for a few more months," Singh told reporters in New Delhi.

"SpiceJet is on a highly visible upswing again... Funding requirement depends on how much the company needs," he said, adding that more money would be put in for expanding fleet.

"Some investors are interested in the airline... We continue to look at options (for investment), he added. Under the revival plan, Singh was to invest Rs 1,500 crore in the carrier.

"We are looking at expanding the fleet," said Singh, who is now chairman and managing director. In the broader market, the benchmark BSE Sensex settled with a loss of 245.40 points at 26,523.09.

PTI