Shares of SpiceJet Limited (BSE:500285) tumbled over 11% to INR 38.7 in trading on October 16, 2023 on the BSE after a report said IndiGo co-founder Rakesh Gangwal had no intentions to buy a stake in the Indian Budget airline. Rakesh Gangwal has no plans to invest in SpiceJet, a banker close to him said. Gangwal was responding to media reports that he may be planning to buy a stake in the low-fare airline.
“He still owns 25% in InterGlobe Aviation Limited (NSEI:INDIGO). There is no point for him to invest in SpiceJet,” the banker said. Gangwal “is angry that retail investors are being misled and therefore he wants to appeal to Sebi to investigate the root cause of such baseless rumours,” said the banker, who did not wish to be named.
Gangwal and his family held nearly 37% stake in IndiGo. He decided to part ways with the airline after a bitter feud with co-founder Rahul Bhatia. Gangwal and his family have been selling stakes throughout the year and are looking to exit the airline in 3-4 years.
On October 13, shares of SpiceJet jumped nearly 18% after a media report said airline IndiGo co-founder Rakesh Gangwal was in advanced talks to acquire a stake in the BSE-listed carrier.