IndiGo co-founder Rakesh Gangwal.
Credit: www.iitk.ac.in
Bengaluru: India's IndiGo co-founder Rakesh Gangwal is in talks to buy a "sizable" stake in troubled domestic airline SpiceJet, ET Now reported on Friday, citing sources.
The news sent shares of SpiceJet up as much as 20 per cent.
Gangwal and his wife Shobha Gangwal hold 13.23 per cent and 2.99 per cent, respectively, in IndiGo operator InterGlobe Aviation, as of June-end, while their Chinkerpoo Family Trust holds a 13.5 per cent stake, according to exchange data.
Cash-strapped SpiceJet, which is "struggling to stay afloat", has been scrambling to raise funds and restore operations for about a fourth of its fleet that has been grounded amid fierce competition in the sector.
SpiceJet, whose market share slid to 4.4 per cent as of September-end from 7.3 per cent at the end of January, did not immediately respond to Reuters' request for comment on the report.
IndiGo shares were up 0.9 per cent in afternoon trading on Friday.