SpiceJet has denied it was in talks with Singapore-based low-cost airline Tigerair for a stake sale.

It was reacting to a media report that said Tigerair, with private equity investors, was in talks to pick up 40 per cent in the Indian budget carrier.

“We. . . wish to categorically state the report this afternoon suggesting that we are in the process of offloading a substantial equity stake to Tigerair is totally misconceived”

said S L Narayanan, group chief financial officer of Sun Group that owns SpiceJet.

Tigerair said: “It is not in our practice to comment on market rumours.”

The airline, which posted an annual loss of Rs 191 crore (Rs 1.91 billion) for the past financial year, has been looking to raise funds for months.

The airline was in talks with private equity investors and Gulf airlines for a stake sale but the talks did not lead to a deal.