SpiceJet surges over 7%, on expressing interest to buy Go First

SpiceJet shares surged as much as 7.77 per cent to hit a fresh 52-week high of Rs 69.20 after the budget-carrier expressed interest to buyout bankrupt Go First.

SpiceJet has expressed interest with the resolution professional of Go First and its wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet, as per an exchange filing

Currently, Go First owes over Rs 6,200 crore to multiple creditors, while it still remains to be seen how seriously creditors will consider the fresh interest.

On the other hand, SpiceJet, which is known vividly to be facing financial issues, has mentioned that the company's board has approved and initiated the process of raising fresh capital of about $270 million to strengthen its financial position and provide resources to invest in growth plans.

The other major firm to have shown interest in purchasing the low-cost airline is Jindal Power. The Naveen-Jindal led firm had shown their interest in October, but backed out later.

Except SpiceJet, the Sky One Company, and Safrik Investments have also shown an interest in buying the bankrupt Go First, while seeking an extension of the deadline, according to media reports.

As of 12:28 am, the shares of SpiceJet were trading 4.03 per cent higher at Rs 66.83.