SpiceJet Shares Surge on Go First Acquisition Interest - Business News

New Delhi, Dec 19 (PTI) Shares of SpiceJet on Tuesday jumped nearly 8 per cent in intra-day trade after the company said it has expressed interest to acquire Go First and plans to submit its offer after carrying out due diligence of the bankrupt carrier.

The stock climbed 7.77 per cent to Rs 69.20 -- its 52-week high -- during the trade on the BSE. It finally ended at Rs 66.08, up 2.91 per cent.

Go First, which stopped flying since May 3 amid financial woes mainly triggered by Pratt & Whitney engine issues, is undergoing an insolvency resolution process.

In a regulatory filing, SpiceJet said it "has expressed interest with the resolution professional of Go First and wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet".

The airline, which is grappling with financial headwinds, last week announced raising around USD 270 million from various investors.

"The Board of the Company has recently approved and initiated the process of raising fresh capital of about US$ 270 million to strengthen its financial position and provide resources to invest in growth plans," the filing said on Tuesday.