New investors may pick up stake in SpiceJet

Mumbai: About half a dozen fund houses have submitted proposals for a possible investment in India’s second largest low-fare carrier SpiceJet Ltd.
The proposals, also known as term sheets, come at a time when some of the airline’s investors are looking to exit their investment, said two persons with knowledge of the development. The Gurgaon-based airline, which is listed on the stock exchanges, is currently holding roadshows to raise $75 million (Rs332.3 crore) by selling new shares ahead of launching international flights.
“Including two very big financial investors, the airline has received good response for proposals for potential investment. More players may submit their term sheets in the coming days,” one of the executives said on condition of anonymity.
The airline’s fund-raising coincides with some of its strategic investors separately talking to Indian companies and financial institutions to exit from the airline. “The airline in its capacity is talking to potential investors, but at the same time several investors are talking to various companies and financial institutions at their own level. But nothing has been finalized as yet,” the second executive said.
In early February, the Dubai government’s investment arm Istithmar PJSC, which was an anchor investor in SpiceJet, sold bulk of its 13.39% stake to a clutch of domestic funds that included DWS Invest BRIC Plus Fund, Reliance Mutual Fund and Birla Mutual Fund.
27/04/10 P.R. Sanjai/Live Mint

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Categories: Foreign Apr 2010, spicejet Apr 2010