Shares of SpiceJet jumped nearly 14% on the BSE after the company’s Chairman & Managing Director Ajay Singh submitted a joint bid for GoFirst jointly Busy Bee Airways Private. Following the announcement, the airline stock hit its 52-week high of Rs 72.29 amid strong trading volume action.

The bid has been submitted by Singh in his personal capacity, the filing said, calling the move “a significant strategic move that has the potential to reshape the landscape of the Indian aviation sector and position SpiceJet for substantial growth in the industry”.

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SpiceJet’s role as the operating partner for the new airline involves providing essential staff, services, and industry expertise and this collaboration is anticipated to generate synergies between the two carriers, leading to improved cost management, revenue growth, and a strengthened market position within the Indian aviation industry, the filing said.

The stock settled at Rs 70.36, up Rs 6.73 or 10.58%.

SpiceJet said that it is currently in the midst of a revival plan and has successfully completed the first tranche of capital infusion amounting to Rs 744 crore, with additional subscriptions pending regulatory approval. The company has also initiated the process to raise an additional Rs 1,000 crore. SpiceJet already holds shareholder approval to raise up to Rs 2,500 crore through QIP.Commenting on the development, Singh said that he “firmly” believes that GoFirst holds immense potential and can be revitalised to work in close synergy with SpiceJet, benefiting both carriers.

The multibagger stock has delivered 118% returns over the past 6 months, significantly outperforming Nifty which has given 14% returns during this period.

The stock is currently trading above its 50-day and 200-day simple moving averages (SMAs) and has traded with relatively low volatility according to Trendlyne data which estimates its 1-year beta at 0.3.

The budget carrier reported a consolidated net loss of Rs 449 crore for the September quarter compared to Rs 830 crore in the year-ago period. The company had posted a profit of Rs 198 crore in the preceding June quarter. Consolidated revenue from operations fell 27% year-on-year to Rs 1,429 crore.

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