SpiceJet shares plummet 11% as report says Rakesh Gangwal doesn’t wish to invest in airline
SpiceJet shares have been declining since the beginning of CY23, with a decrease of 18.19% to date. While this is a notable decline, it is significantly less compared to the substantial 43% drop experienced in CY22.
SpiceJet shares witnessed an 11% decline, reaching ₹38.72 apiece, during Monday's trading session. This drop came on the heels of an impressive 19.4% surge in the previous trading session on Friday (October 14), during which the shares reached a one-year high of ₹43.8 apiece.
At 12:45 PM, the stock was trading with a drop of 8.8% at ₹39.70.
On October 13 (Friday), The Economic Times reported that IndiGo co-founder and former promoter Rakesh Gangwal is in advanced talks for picking up a “sizeable stake" in the financially stressed carrier. This news lifted the stock price in Friday's trade.
However, a banker close to Gangwal dismissed the reports, saying that Rakesh Gangwal has no intention of investing in SpiceJet, ET reported on Saturday (October 14). This development led to a decline in SpiceJet's stock price in today's trading session.
"It doesn’t make the remotest sense for him to invest in SpiceJet," the report quoted the banker as saying, without revealing his identity. “Moreover, he sees SpiceJet as a dying airline," ET further quoted the banker as saying.
The banker, as per the report, claimed that Gangwal was upset as retail investors were “misguided by the rumours" and would like to request the Securities and Exchange Board of India (SEBI) to look into the issue.
According to Trendlyne shareholding data, Rakesh Gangwal holds a 13.23% stake, and his wife Shobha Gangwal owns a 2.99% stake, while their Chinkerpoo Family Trust holds a 13.50% stake in IndiGo as of the June ending quarter (Q1FY24).
Meanwhile, SpiceJet shares have been declining since the beginning of CY23, with a decrease of 18.19% to date. While this is a notable decline, it is significantly less compared to the substantial 43% drop experienced in CY22.
Foram Chheda, CMT, and the founder of ChartAnalytics.co.in, said, "After a prolonged downtrend lasting over two years since December 2020, SpiceJet stock price hit a low point at Rs. 22.50 before rebounding. As it climbed, it surpassed key moving averages (50-day, 100-day, and 200-day MA), signaling a shift to a bullish trend."
"The ascent paused around Rs. 43 before a corrective dip, coinciding with a Golden Crossover (50-DMA crossing above 200-DMA). Finding support near the 50-day MA, the stock is now moving back towards the Rs. 43 mark with increased volume, indicating strong upward momentum. Today's dip to Rs. 39 presents a potential buying opportunity, with an anticipated 15% uptick."
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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