Istithmar to infuse more funds into SpiceJet

Bangalore: Dubai government-owned investment firm Istithmar PJSC is keen on infusing more funds into budget airline SpiceJet Ltd when it goes for the next round of funding.
Sources said senior Istithmar executives have assured the Kansagra-owned airline that it will be bringing in more funds to maintain its current stakeholding in the company. The firm does not want to dilute its stake in the airline. This was conveyed by Istithmar to SpiceJet at a meeting on Tuesday.
SpiceJet Ltd chairman and CEO Siddhanta Sharma refused to comment on it but confirmed that the Dubai-based firm had committed to invest in the airline to maintain its stake at the current level. Istithmar currently holds 13.42% (as on December 31, 2007) stake in SpiceJet with an investment of Rs 325 crore ($81 million).
The Dubai firm pumped in Rs 125 crore ($ 31 million) into the no-frills airline in the first round of funding and Rs 200 crore ($50 million) in the second. Sources said that Istithmar’s investment would come in when SpiceJet raises money to finance its next tranche of 10 planes.
20/03/08 Praveena Sharma/DNA Money/Sify

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Categories: Foreign Mar 2008, SpiceJet Mar 2008