SpiceJet shares soar near 20 per cent to upper circuit limit on revival hopes

SpiceJet shares spurted by almost 20 per cent on Friday on expectations of revival of the troubled budget carrier.

Ajay Singh, one of the company's original promoters, met Civil Aviation Minister Ashok Gajapathi Raju on Thursday in an effort to bring the distressed airline out of crisis.

Cheering the move, shares of SpiceJet surged by 19.70 per cent to settle at Rs 15.80, the upper circuit limit of the stock on the Bombay Stock Exchange (BSE).

On volume front, around 296.87 lakh shares of the company were traded at the BSE during the day.

"They (SpiceJet) have told the Ministry that they are likely to get an investor. The airline does not have a safety issue (but) it is going through financial stress. They are trying to address their financial woes," Raju had said after the meeting late Thursday evening.

The minister said Singh shared some thoughts about the no-frills airline's recapitalisation plans though these were not concrete plans as yet.

SpiceJet had debts worth Rs 1,600 crore as on December 5, which had prompted aviation regulator DGCA to put them under heightened surveillance.