PE firms in race for SpiceJet stake

New Delhi: Vijay Mallya is interested in SpiceJet and so is Naresh Goyal, but a handful of private equity firms have winged past them competing for a chunk of SpiceJet which controls about 8.5 per cent of Indian skies.
SpiceJet is looking to divest up to 10 per cent equity and hopes to raise more than Rs 120 crore by issuing fresh equity. Caledonia Investment, a British investment company has reportedly emerged as a frontrunner. But Irelandia, TPG and Blackstone are also in the race.
SpiceJet has 11 Boeing aircraft and plans to take its fleet to 25 by 2008. The airline will be spending some money to buy aircraft and on operations. The deal is likely to be sealed by end of next month with due diligence expected to start soon.
The private equity funds are likely to be issued preference shares meaning none of the promoters will be divesting their holdings at present.
10/07/07 Arijit Banerjee/NDTV.com

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Categories: SpiceJet Jul 2007