Kansagra family in parleys to sell SpiceJet stake

The London-based Kansagras, promoters of SpiceJet Ltd, who have around 13% stake in the budget airline, are looking to exit.
According to sources, Bhupendra Kansagra, who, along with his family, holds the stake through family firm Royal Holdings Services Ltd, is scouting for a buyer and has initiated talks with "several interested parties."
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They want to exit the airline business because rising aviation turbine fuel prices are hurting the bottomline.
"They (Kansagras) feel exorbitant jet fuel prices is making the business model of low-cost airlines commercial unviable," said the source.
Moreover, since the lock-in period for their stake was over, it makes it easier for them to cash out. The lock-in period of the Kansagras expired on February 7.
13/05/08 Praveena Sharma/ DNA MONEY/Sify

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Categories: SpiceJet May 2008