IndiGo co-founder Gangwal in talks to buy 'sizable' stake in SpiceJet, ET Now reports

BENGALURU, Oct 13 (Reuters) - Indias IndiGo (INGL.NS) co-founder Rakesh Gangwal is in talks to buy a \“sizable\” stake in troubled domestic airline SpiceJet , ET Now reported on Friday, citing sources.

The news sent SpiceJets shares up as much as 20%, before closing 19.4% higher.

Cash-strapped SpiceJet, which is \“struggling to stay afloat\”, has been scrambling to raise funds and restore operations for about a fourth of its fleet that has been grounded amid fierce competition in the sector.

SpiceJet, whose market share slid to 4.4% as of September-end from 7.3% at the end of January, did not immediately respond to Reuters request for comment on the report.

Gangwal, who along with his wife Shobha Gangwal holds 16.22% in IndiGo-operator InterGlobe Aviation, could not be immediately reached for comment.

Gangwals Chinkerpoo Family Trust holds a 13.5% stake in Indigo, according to exchange data.

IndiGo shares closed up 1% on Friday.