Shares of SpiceJet Ltd witnessed a significant surge of 13% during the afternoon session today, reaching Rs 71.90 on the Bombay Stock Exchange (BSE). The rally follows the announcement that SpiceJet, in collaboration with Busy Bee Airways Private Limited, has submitted a joint bid for the acquisition of the bankrupt airline GoFirst.
The bid, spearheaded by Ajay Singh, Chairman and Managing Director of SpiceJet, is a strategic move that aims to revive and reshape the fortunes of GoFirst, contributing to the overall dynamics of the Indian aviation industry.
In his personal capacity, Ajay Singh is leading the bid along with Busy Bee Airways, with SpiceJet designated as the operating partner for the proposed new airline. The collaboration is envisioned to bring together essential staff, services, and industry expertise, fostering synergies between the two carriers. This, in turn, is anticipated to result in improved cost management, revenue growth, and a strengthened market position within the Indian aviation landscape.
The positive market response is reflected in SpiceJet’s market capitalization, which rose to Rs 4,858 crore, showcasing investor confidence in the strategic direction of the airline and the potential impact of the proposed acquisition on its market standing.
SpiceJet highlighted, “This collaboration is anticipated to generate synergies between the two carriers, leading to improved cost management, revenue growth, and a strengthened market position within the Indian aviation industry.”
