Mumbai: Shares of SpiceJet on Friday surged nearly 20 percent after fair trade watchdog CCI approved original promoter Ajay Singh's plan to acquire controlling stake in the carrier.
The stock soared 19.80 percent to settle at Rs 23.90 -- its upper circuit limit on the BSE.
The company's market value rose by Rs 237.69 crore to Rs 1,432.69 crore.
In terms of volume, 308 lakh shares of the company changed hands on the BSE during the day.
Under the revival plan, Singh would infuse Rs 1,500 crore into the carrier after acquiring over 58 percent stake from outgoing promoters, Marans.
In a regulatory filing today, SpiceJet said Competition Commission of India (CCI) has approved Singh's proposal to acquire majority stake in the carrier.
"The company has been informed by Ajay Singh that the CCI has approved the proposed combination and acquisition of entire shareholding of Kalanithi Maran and Kal Airways Pvt Ltd (existing promoters) aggregating to 350,428,758 equity shares (58.46 percent) by Ajay Singh, in terms of the Competition Act, 2002," the filing said.
Ajay Singh had yesterday said that Marans are expected to transfer their entire stake of over 58 per cent to him in next two days.
"A tranche of Rs 400 crore will be infused into SpiceJet by next Monday or Tuesday," Singh said.
Singh is now awaiting nod from the Home Ministry for his appointment as Director on the Board of SpiceJet.
The deal has already been cleared by the Civil Aviation Ministry.
In late January, SpiceJet Board had approved transfer of Maran family's entire 58.46 percent existing stake to Singh, while the company would raise Rs 1,500 crore through issuance of fresh securities.
