Shares in SpiceJet surged 10 per cent to its maximum intraday limit of Rs 20.50 after its co-founder Ajay Singh agreed to buy out the stake of its billionaire owner Kalanithi Maran. (Read)
In a filing to BSE the company has informed that "the Board of Directors of the Company has taken on record the proposal of the principal shareholder and Promoter, Mr. Kalanithi Maran and KAL Airways Private Limited to transfer the ownership, management and control of the Company to Mr. Ajay Singh pursuant to a 'Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet Limited' to be filed before the Competent Authority, the Ministry of Civil Aviation, Government of India."
Ajay Singh, who helped found SpiceJet in 2005 and was likely to submit his rescue plan by the end of the month, has agreed to take control of the ownership and management from majority owner Kalanithi Maran's Sun Group, the airline said on Thursday.
Ajay Singh, speaking to NDTV said that under the deal more investors are likely to join in.
Mr Singh believes that under the changing business environment it is possible to turn the fortune of the airline. "Efforts will be made to ensure that unit-cost are in-line with other budget airlines, and to introduce flights on new routes," he added.