Just a day after it was reported that Gangwal might be buying a big chunk of SpiceJet, a banker who knows him well denied this news when talking to a newspaper.
Is Rakesh Gangwal Buying SpiceJet Stakes?
News broke that Rakesh Gangwal, a co-founder of IndiGo, was thinking about buying a big chunk of SpiceJet. This made SpiceJet’s stock go up by 20% on October 13. But, the very next day, a banker close to Gangwal said this isn’t true.
Now, there’s no official word from IndiGo, SpiceJet, or Gangwal, and this has left investors and market watchers confused because of the conflicting reports.
Here’s what we know:
- On October 13, a report from ET Now said Gangwal was in talks with SpiceJet to buy a big part of the airline. They heard this from sources who claim to know what’s happening.
- The report also said these talks were quite far along, which means they were actively negotiating.
- Because of this news, SpiceJet’s stock price went up by 20% during the day and ended at ₹43.60 on the BSE. That’s almost 20% higher than the closing price of the previous day.
People close to Rakesh Gangwal, who’s one of the founders of IndiGo, have said that the reports about him investing in SpiceJet are not true. They’re pretty clear that he has zero interest in getting involved with the struggling airline. According to these people, he even thinks that SpiceJet is in bad shape.
These folks, whose names we don’t know, mentioned that Gangwal is not happy because regular investors have been given wrong information by these rumors. He’s planning to ask the Securities and Exchange Board of India (SEBI) to look into this.
By the way, it’s important to mention that Gangwal, along with his wife, still owns about 16.22 percent of IndiGo. The Gangwal’s Chinkerpoo Family Trust also has about 13.5 percent of the company.