Promoter stake comes down in SpiceJet
The promoter stake in budget carrier SpiceJet held by the Kansagara family has come down from 17 to 13 per cent, reports Ranju Sarkar.india Updated: Jan 17, 2007 21:54 IST
The promoter stake in budget carrier SpiceJet held by the Kansagara family has come down from 17 to 13 per cent after the recent fund-raising exercise in which the airline raised $67 million (Rs 295 crore) from several high-profile investors.
These includes the Tatas, who have invested $17.5 million (Rs 77 crore) for a 7 per cent stake, private equity firm Isthimar ($25 million), Goldman Sachs ($15 million) BNP Paribas ($5 million) and UK venture capital fund KBC ($2.5 million).
SpiceJet CEO Siddhanta Sharma disclosed the details at a press meet in Mumbai while announcing its new flights out of Mumbai to Bangalore and Hyderabad. "The Kansagaras have never been in the driver's seat or control freaks. It's a board-run company. What they would be more interested is the value of their investment," added Sharma.
The Kansagara had invested around Rs 80 crore, as part of the Rs 100 crore which came up to revive ModiLuft, the value of which has appreciated to roughly Rs 200 crore today, says an industry analyst.
The airline has issued 67 million new shares at Rs 51.36, which has increased its equity base from Rs 185 crore to Rs 242 crore.
As a result of the equity dilution, the stake of director Ajay Singh in the airline has also come down from 13 per cent to 10 per cent. There were some reports that the Tatas may increase its stake to 11 per cent, which the Tatas denied last evening.
Sharma said SpiceJet had got offers from investors for $118.5 million worth of stock in the carrier that included the $30 million bid from Texas Pacific Group, which later withdrew from the sale for being occupied with the Qantas deal.
SpiceJet, which started flying in May 2005, plans to expand its fleet to 18 planes by December 2007 from the current 10. The airline, which had losses of Rs 34 crore on revenues of Rs 324 crore for six months ended November 2006, hopes to close the year (10-months ended March) with losses of Rs 55-60 crore.
First Published: Jan 17, 2007 21:54 IST