Nevrekar
9th Jan 2008, 06:23
DNA Money
SpiceJet soars on Anil buyout buzz
Nirmal John
Wednesday, 09 January , 2008, 08:56
Last Updated: Wednesday, 09 January , 2008, 09:32
The SpiceJet share has taken wing, fuelled by speculation that Anil Ambani is leading the race to acquire it. Street buzz says Vijay Mallya and the Tatas, too, are in the race.
The Tatas already hold 6.42 per cent stake.
The scrip has been on the way up for the past few weeks and ended at Rs 96.10, up nearly 4 per cent at the Bombay Stock Exchange, after registering an intraday, 52-week high of 104.80.
The stock has risen 70 per cent since December 10, when it was quoting at Rs 56.70.
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In an e-mail response, a SpiceJet spokesperson said the company is not in talks with anyone for selling of stake. "This is just a rumour."
The consolidation of Air Sahara with Jet, and Air Deccan with Kingfisher, apart from rational pricing, has been helping the airline sector breathe easy in the last couple of months.
A deal with SpiceJet would mark Reliance-ADAG's entry into aviation.
Mallya's UB Group is said to have bid in a defensive move to thwart deep-pocketed investors from entering the sector.
An analyst with a foreign brokerage house, who did not wish to be named due to compliance reasons, said SpiceJet has become a significant player in a span of 5-6 months.
"While speculation about it becoming an acquisition target has been floating around for some time, it would be a little difficult to carry it out now with higher valuations, especially for people who are already in the business. A more realistic bet could be Anil Ambani, who can raise the kind of money needed," he said.
A senior SpiceJet official, on the condition of anonymity, said, "There is nothing happening. If there is something happening on the promoters' side I'm not aware of that."
He said SpiceJet would break even in FY09. The carrier currently has a fleet of 18 aircraft and has another 14 on order.
A tightly run operation, SpiceJet has also been recording the lowest cost of Rs 2.43 per ASKM (available seat kilometre).
The airline is also planning to set aside 2.5 per cent of the total stock for employee stock options to those who were on the rolls as on April 1, 2007, at the rate of Rs 30 per share.
Analysts say that some time back Jet Airways was very keen on buying SpiceJet as the two use similar kind of aircraft.
The entry of other players, prompting a bidding war is believed to have increased valuations beyond Jet's reach.
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SpiceJet soars on Anil buyout buzz
Nirmal John
Wednesday, 09 January , 2008, 08:56
Last Updated: Wednesday, 09 January , 2008, 09:32
The SpiceJet share has taken wing, fuelled by speculation that Anil Ambani is leading the race to acquire it. Street buzz says Vijay Mallya and the Tatas, too, are in the race.
The Tatas already hold 6.42 per cent stake.
The scrip has been on the way up for the past few weeks and ended at Rs 96.10, up nearly 4 per cent at the Bombay Stock Exchange, after registering an intraday, 52-week high of 104.80.
The stock has risen 70 per cent since December 10, when it was quoting at Rs 56.70.
• Check out our Yearender Special
In an e-mail response, a SpiceJet spokesperson said the company is not in talks with anyone for selling of stake. "This is just a rumour."
The consolidation of Air Sahara with Jet, and Air Deccan with Kingfisher, apart from rational pricing, has been helping the airline sector breathe easy in the last couple of months.
A deal with SpiceJet would mark Reliance-ADAG's entry into aviation.
Mallya's UB Group is said to have bid in a defensive move to thwart deep-pocketed investors from entering the sector.
An analyst with a foreign brokerage house, who did not wish to be named due to compliance reasons, said SpiceJet has become a significant player in a span of 5-6 months.
"While speculation about it becoming an acquisition target has been floating around for some time, it would be a little difficult to carry it out now with higher valuations, especially for people who are already in the business. A more realistic bet could be Anil Ambani, who can raise the kind of money needed," he said.
A senior SpiceJet official, on the condition of anonymity, said, "There is nothing happening. If there is something happening on the promoters' side I'm not aware of that."
He said SpiceJet would break even in FY09. The carrier currently has a fleet of 18 aircraft and has another 14 on order.
A tightly run operation, SpiceJet has also been recording the lowest cost of Rs 2.43 per ASKM (available seat kilometre).
The airline is also planning to set aside 2.5 per cent of the total stock for employee stock options to those who were on the rolls as on April 1, 2007, at the rate of Rs 30 per share.
Analysts say that some time back Jet Airways was very keen on buying SpiceJet as the two use similar kind of aircraft.
The entry of other players, prompting a bidding war is believed to have increased valuations beyond Jet's reach.
Print | Mail | Post your comments | Rate this Feature