SpiceJet and Jet Airways share prices hogged limelight today, surging as much as 10 per cent, in-line with an positive broader market amid lower crude oil prices and low-cost airline IndiGo’s parent InterGlobe Aviation fixing the price band for its initial share sale.
SpiceJet share price zoomed 9.94 per cent to settle at Rs 47.55 — its 52-week high level — on BSE.
Shares of Jet Airways also surged 8.83 per cent to Rs 417.30 at close of trade.
After a prolonged wait, InterGlobe, which is running the country’s most profitable carrier under the brand IndiGo, will be hitting the market for its little over Rs 3,200-crore IPO on October 27.
The company has fixed the price band for its initial share sale at Rs 700-765, through which it could raise up to Rs 3,268 crore.
The IPO will be the largest in nearly three years.
IndiGo’s IPO is likely to generate increased interest in the sector.
Meanwhile, Wadia Group-promoted budget carrier GoAir is also planning to go for an initial public offer in the current fiscal.
GoAir is likely to be the second domestic carrier to come out with an IPO this fiscal after rival IndiGo.
Aviation stocks are also attracting huge buying interest amid decline in global crude oil prices.
Lower crude oil prices benefit aviation companies as jet fuel constitutes over 40 per cent of an airline’s operating costs.