Shares in SpiceJet surged as much as 8.5 percent after the Times of India reported the budget carrier was close to selling a stake to a foreign carrier, "most likely" Qatar Airways.

SpiceJet said in a later statement that it was premature to comment on the possibility of selling shares to any investor, but said some investors had shown interest after a recent rule change allowing foreign carriers buy stakes in local airlines.

"(A) few investors have evinced interest in the company post government of India allowing FDI (foreign direct investment) in civil aviation sector to foreign airlines," SpiceJet said in a statement to the Bombay Stock Exchange.

"It will be very pre-mature to comment on the possibilities of any fresh equity issuance to such interested parties or confirm/deny names of any specific entity," the company added.

SpiceJet shares were trading up 4.8 percent at 46.15 rupees at 2:39 p.m. They surged 161 percent last year on expectations the airline would eventually sell a stake to a foreign carrier.

India in September allowed foreign airlines to buy a maximum 49 percent stake in local carriers, providing battered airlines a potential lifeline through fresh funding.

Jet Airways, India's second-largest carrier, is in talks with Abu Dhabi's Etihad Airways to sell a stake, it said earlier this month, in what could be the first deal in the sector following the rule change.