Stock in Focus: SpiceJet to be in focus as its chief Ajay Singh, Busy Bee submit bid for Go First

Shares of SpiceJet surged more than 11 per cent on Friday after the airline said its chief Ajay Singh, Ajay Singh along with Busy Bee Airways, has submitted a bid for bankrupt budget airline Go First. The stock of no-frills carrier zoomed 11.28 per cent to close at Rs 70.81 apiece on the BSE. During the day, shares of the company hit an intra-day high of Rs 71.9, up 13 per cent. In terms of volume, nearly 2.48 crore equity shares were traded on the BSE.

At the close of the trading session, the company market valuation rose to Rs 4,845.80 crore.

In a release on Friday, SpiceJet said its Chairman and Managing Director Ajay Singh and Busy Bee Airways submitted a joint bid for bankrupt Go First - which stopped flying on May 3, 2023. Its plea for voluntary insolvency resolution proceedings was admitted by the National Company Law Tribunal (NCLT) on May 10 last year.

For the uninitiated, travel portal EaseMyTrip's co-founder and CEO Nishant Pitti is a majority shareholder in Busy Bee Airways. Pitti said, who holds the majority shares of Busy Bee Airways in his personal capacity, he is supporting the "joint bid to resurrect the airline in the interest of the employees and all its stakeholders".  

Similarly, Pran Sathiadasan, one of the directors at Busy Bee Airways Private Limited, is also a director at Fly Dubai. According to people aware of the development, the joint bid may result in some support for the low-cost air carrier from Fly Dubai.  
 
Earlier, Zee Business panellist and market expert Sumit Bagaria advised investors to hold their positions. 

"Stock of SpiceJet is showing a sideways move and there will be fresh movement once it breaks the level of Rs 70. It has a support level of Rs 57-58," Bagaria had said.

With agency inputs