Shares of SpiceJet Ltd. are on course to snap their four-day winning streak on reports of founder Ajay Singh weighing a stake sale.
Singh is in talks with a Middle East-based carrier and a large Indian conglomerate for a possible stake sale, The Economic Times and Mint, among others, reported citing people aware of the matter. He holds nearly 60% stake in SpiceJet.
SpiceJet, in an email to BQ Prime, said, “The company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures in accordance with applicable regulations.”
Also, on Monday, the debt-laden airline—which has seen a spate of delays in takeoffs and emergency landings because of technical glitches over the last few months—entered into a final settlement with Airports Authority of India and cleared all outstanding principal dues of the airports operator.
Shares of the airline fell over 6%, the worst day in six weeks. In the last four sessions, the stock had gained 30%.
Its trading volume was thrice the 30-day average, when markets closed. Of the 10 analysts tracking the company, two recommend a ‘buy', four each suggest a ‘hold' and a ‘sell', according to Bloomberg data. The 12-month consensus price target implies a downside of 40.5%.
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