SpiceJet offloads stake to Tata Group

Low-cost carrier, SpiceJet on Thursday approved a 25% fresh issue of shares worth USD 71.34 million to raise funds for fleet expansion. Under the terms of the deal, which values the company at USD 285.36 million, the Tata Group will be allotted shares worth USD 16.8 million, Ishtitmar will receive shares worth USD 25 million, BNP Paribas will get shares worth USD 15 million, Telemnix will receive shares worth USD 7 million, Goldman Sachs will be allotted shares worth USD 5 million and UK's KBC Fund will get shares worth USD 2.5 million. Earlier in December, the company announced its plans to sell USD 80 million worth of shares on a preferential basis. The company had, however, received offers amounting to USD 118 million.

Global private investment firm, Texas Pacific group wanted to invest USD 30 million but withdrew the offer. SpiceJet, which currently has a market share of around 7.5%, will acquire its 11th aircraft in February and plans to expand its fleet to 18 planes by December. The company intends to raise its authorized share capital from Rs 2.5 billion divided into 2,500 lakh equity shares of Rs 10 each to Rs 3.5 billion divided into 3,500 equity shares of Rs 10 each ranking pari passu with the existing shares of the company and respective changes in its memorandum of association.

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