Tuesday, November 19News That Matters

Rakesh Jhunjunwala picks up 1.4% stake in Spicejet

Rakesh Jhunjhunwala’s Rare Enterprises today picked up 75 lakh shares of SpiceJet @ average price of Rs 17.88  for more than Rs 13 crore through open market route, amid the no frills carrier facing tough business conditions.

 The share purchase comes days after SpiceJet said that a few parties have evinced interest in making investments in the carrier.

According to bulk deal details with the BSE, Rare Enterprises acquired 75 lakh shares. Based on the total number of shares of more than 53.5 crore at the end of September, today’s  share sale would amount to about 1.4 per cent stake.

 The shares were  bought for an average price of Rs 17.88 apiece, valuing the transaction size at  Rs 13.41 crore.

Spicejet shares surged 18.36 per cent to settle the day at 18.24 apiece, on the BSE.

On November 24, SpiceJet had informed exchanges that “a few  parties have approached us and evinced interest in making investments…as the  company has been exploring various options for raising fresh capital”. It had also said that deliberations with prospective investors were “at an exploratory and preliminary stage.

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