SpiceJet seeks to raise $75 million

Mumbai: India’s second largest low fare carrier SpiceJet Ltd is seeking to raise $75 million (Rs345 crore) by selling new shares, according to two senior company executives, as the company prepares to start international services.
SpiceJet’s chief executive officer Sanjay Aggarwal confirmed the development, without divulging details.
“We are in the process of raising capital anywhere between $50 and $75 million,” Aggarwal said. “But it is too premature to comment about the fund raising details.”
The top management of the airline, from which anchor investor and Dubai government’s investment arm Istithmar PJSC exited early this month, has met a clutch of domestic funds including Reliance Capital Asset Management Ltd, Birla Sun Life Insurance Co. Ltd, and Axis Asset Management Co. Ltd, said one of the executives, who asked not to be identified as he’s not authorized to speak to the media. Executives at the three funds confirmed the meetings.
IDFC-SSKI Securities Ltd and Edelweiss Capital Ltd are helping SpiceJet find an investor, he added.
The carrier will become eligible to offer overseas flights as it completes five years of operations—a prerequisite for flying internationally according to Indian rules—in May this year.
17/02/10 P.R. Sanjai/Live Mint

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Categories: spicejet Feb 2010