LCC SpiceJet Ltd. has clarified that it isn't in discussions with TPG Capital for a stake sale, reacting to a newspaper report published Monday. "The company is not in discussions with TPG for [a] stake sale and further, it cannot comment on market rumors and speculative reporting," India's second-largest budget airline by market share said in a filing to the Bombay Stock Exchange.

The Economic Times Monday reported that the private equity firm is in talks to buy a minority stake in the airline, citing two unnamed sources. The report didn't elaborate on the size or value of the stake, but said SpiceJet is planning to raise $270 million to fund aircraft purchases.

Meanwhile, the LCC is witnessing an exodus of sorts. More than a hundred cabin and cockpit crew have left the Gurgaon-based carrier in the last couple of months to join rival airlines. Aviation experts feel that such high-level of attrition could seriously impact the airline’s expansion plans. SpiceJet reported the highest cancellation rate of 2.9% among domestic carriers in June as per aviation regulator Directorate General of Civil Aviation.