Maran to Buy Additional 5% Stake in SpiceJet

Mumbai: SpiceJet Ltd. plans to raise about 1.3 billion ($27.8 million) by selling an additional 5% stake to its main shareholder Kalanithi Maran, at a time when private equity investors are shying away from India's airline sector, which has been hit by high jet fuel prices.
"The fresh investment shows the confidence the promoter has in the airline," Neil Mills, chief executive of India's second-biggest low-fare carrier by market share said.
"We are always talking to a lot of investors, but, as I have said before, with rising fuel prices and other factors, this is not the best time to seek external funding in the industry."
Mr. Maran, who is also the founder of media group Sun TV Network Ltd., owned 38.61% of SpiceJet as of the end of June via KAL Airways Pvt. Ltd., according to the Bombay Stock Exchange website.
Earlier Tuesday, both the Mint newspaper and the CNBC TV-18 television channel reported about Mr. Maran's additional investment in the airline, citing Mr. Mills.
13/09/11 Anirban Chowdhury/Wall Street Journal

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Categories: spicejet Sep 2011