IndiGo co-founder Rakesh Gangwal in talks to acquire stake in SpiceJet, shares surge

Rakesh Gangwal, one of the co-founders of IndiGo, is reportedly in advanced discussions to acquire a substantial stake in SpiceJet, an Indian airline that has been grappling with financial difficulties. This development has sent SpiceJet's stock price soaring by as much as 20%, signaling investor optimism about potential financial support and a strategic partnership.

Gangwal and his wife, Shobha Gangwal, already maintain stakes in InterGlobe Aviation, the operator of IndiGo, with their Chinkerpoo Family Trust also holding a significant stake. The move by Gangwal to explore a stake in SpiceJet could be seen as a strategic decision to potentially assist the ailing airline and strengthen his presence in the Indian aviation industry.

In addition to these developments, SpiceJet recently announced a delay in the release of its financial results for the fiscal year 2022-2023. This delay is attributed to the ongoing medical incapacitation of a key member of the airline's audit committee. Notably, this is the second consecutive year in which SpiceJet has postponed the disclosure of its financials for the quarter ending in March.

The airline has been facing a range of challenges, including disruptions due to ransomware attacks and substantial financial losses incurred over the past few years. These difficulties have led SpiceJet to actively seek funding and work toward resuming operations for a substantial portion of its grounded fleet, which has resulted from disputes with aircraft lessors over payment issues and increased competition in the aviation sector.

As the Indian aviation industry grapples with ongoing challenges and fierce competition, the potential investment by Rakesh Gangwal could have far-reaching implications. SpiceJet's recent financial struggles and operational disruptions have drawn attention to the need for financial support and stability in the sector.

Gangwal's engagement in discussions to acquire a stake may signify an effort to bolster the airline and contribute to the recovery of India's aviation industry. However, the ultimate outcome of these discussions and their impact on SpiceJet's future remain to be seen, as the airline continues its efforts to navigate the complex and competitive aviation landscape.