Co-founder Ajay Singh heads SpiceJet rescue op

A clutch of investors lead by former director and co-founder Ajay Singh is set to pick up a significant stake in the embattled SpiceJet, leading to an immediate capital infusion of Rs 1200-1500 crore in the budget carrier that is staring at a shut down.

A clutch of investors lead by former director and co-founder Ajay Singh is set to pick up a significant stake in the embattled SpiceJet, leading to an immediate capital infusion of Rs 1200-1500 crore in the budget carrier that is staring at a shut down.

The new investors, which include international private equity players but no foreign airlines, are likely to buy out the entire 53.48% stake of the promoter, billionaire media tycoon Kalanithi Maran, a source, who did not wish to be identified, told HT.

In the new deal, Singh, who currently hold a stake of around 4.5% in the airline, is likely to raise his personal stake to more than 26%. Singh is currently finalising the contours of the investment with the international PE firms.

HT had first reported on August 8 that Maran, the billionaire media tycoon, was in talks with Singh for buying out his stake in the airline.

“This airline is eminently revivable,” a source close to the potential investors told HT on Thursday.

Singh, who has held several meetings with top aviation ministry officials this week, met aviation minister Ashok Gajapathi Raju on Thursday and made a detailed presentation on the timelines of capital infusion and a revival roadmap.

“Singh is interested in investing in SpiceJet. He conveyed this to the minister today,” said a source. “He, along with a set of investors, should submit a plan to revive the airline by next week,” the source said.

SpiceJet needs an immediate infusion of about Rs 2000 crore to survive. Maran had bought a majority stake in SpiceJet from its promoter Bhupendra (Bhulo) Kansagra and distressed-assets buyout specialist Wilbur L. Ross in 2010. Singh, along with the

Kansagra family had launched SpiceJet in 2005.