NEW DELHI — Shares of SpiceJet rose over 8 per cent on Monday after chairman and main promoter Ajay Singh said he will invest more money in the airline for expanding its fleet.
The stock jumped 8.26 per cent to Rs 19.65 at the Bombay Stock Exchange.
Singh will be putting in more money for fleet expansion, even as he continues to explore various investment options. Singh, a co-founder, has so far invested about Rs 800 crore into the no-frills airline since he took back the reins last December after the airline was grounded, and pilots left in droves.
Singh managed to halt the decline and has led a mini-turnaround. After seven quarters of losses, SpiceJet posted a net profit of Rs 22.51 crore in the January-March period helped by renegotiated contracts and settlements and provisioning for re-delivery expenses.
"We were at a phase where the airline was actually shut down. The focus is now on getting back consumer confidence and we will work on that for a few more months," Singh told reporters in New Delhi.
"SpiceJet is on a highly visible upswing again. Funding requirement depends on how much the company needs," he said, adding that more money would be put in for expanding fleet. "Some investors are interested in the airline... We continue to look at options (for investment), he added.
Under the revival plan, Mr Singh was to invest Rs 1,500 crore in the carrier. "We are looking at expanding the fleet," said Singh, who is now chairman and managing director.