Shares of SpiceJet tumbled nearly 11% in Monday's (October 16) trade, following reports of IndiGo co-founder Rakesh Gangwal not looking to acquire a stake in the low-cost carrier. At 12:12 pm, the scrip was trading 8.72% lower at Rs 39.80 apiece on the NSE.

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The stock hit a 52-week high of Rs 43.82 on October 13, 2023 and fell to a 52-week low of Rs 22.65 on May 23, 2023. The scrip has risen 2.23% since the beginning of this year and has gained 3.62% in the last 12 months.

In terms of technicals, the 14-day relative strength index (RSI) of SpiceJet stands at 73.2, indicating it's trading in the overbought territory. This implies that stock may show pullback.

The stock has a one-year beta of 0.5, indicating very low volatility during the same period. SpiceJet shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

Last week on October 13, reports of the IndiGo co-founder considering buying a stake in SpiceJet had sent the debt-ridden airline's shares soaring. The domestic carrier had risen around 20% to Rs 43.60 during the day on claims that Gangwal is looking to commit to a stake acquisition in the company.

However, the buzz fizzled out a day later after bankers close to Gangwal dismissed the reports, saying that the former promoter was not remotely interested in making an investment in SpiceJet.

In addition, according to the banker, Gangwal is reportedly upset since the rumours "misguided" retail investors and is considering requesting capital markets regulator SEBI to investigate the matter, according to a ET report.

Gangwal and his wife Shobha Gangwal hold 13.23% and 2.99, respectively, in IndiGo operator InterGlobe Aviation, as of June 2023, while their Chinkerpoo Family Trust holds a 13.5% stake, according to data from exchanges.

Gangwal is, however, in the process of exiting the company after a bitter feud with co-founder Rahul Bhatia.

First Published:Oct 16, 2023 1:09 PM IST