SpiceJet plans $75-mn preferential issue

Hyderabad: Delhi-based domestic air carrier SpiceJet plans to raise around $75 million by issuing preferential shares by September 2010.
The airline has appointed financial services firm Edelweiss, along with IDFC-SSKI Securities, as co-fund manager to find a suitable investor.
“We would like to go for preferential allotment of shares, but the actual financial instrument will be decided only after assessing the response from investors,” SpiceJet chief executive officer Sanjay Aggarwal said.
The low-cost airline needs money to start international operations and expand its fleet. SpiceJet is planning to fly to neighbouring countries such as Sri Lanka, Nepal and Maldives. It is also expanding its network in the domestic market by adding new stations. It currently operates with a fleet of about 20 Boeing 737 jets and commands a share of 12.4% in the domestic market.
The airline has already initiated talks with various investors, including private equity and privately-held business houses to raise the capital.
04/03/10 Nirbhay Kumar/Economic Times

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Categories: spicejet Mar 2010