SpiceJet shares up on stake sale talks

SpiceJet shares surged over 7 per cent in early trade on Friday to close at 23.90 registering an upward movement of 3.24 per cent in intra day trade.

The initial gains were led by speculations that the budget airline is in talks with Qatar Airways over a commercial agreement, which could eventually lead to the Gulf carrier buying a stake in SpiceJet.

At 2.25 pm, shares of SpiceJet were trading 5.18 per cent higher at Rs 24.35.The stock opened at Rs 23.85 and touched a high of Rs 24.90.

"A few parties have approached us and evinced interest in making investments into SpiceJet Limited," the company said in a statement following a   report by The Economic Times .

A stake sale will help Ajay Singh-led SpiceJet, emerging as it is from a crisis stemming from a cash crunch.

The airline has been banking on innovative discount offers to drive sales. SpiceJet on Thursday rolled out an EMI scheme for ticket payments.

If a deal does take place, it will be the second such transaction in recent years after Etihad Airways picked up a 24 per cent stake in Jet Airways in 2013.