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The promoter of beleaguered carrier SpiceJet, Ajay Singh, is understood to be in discussions with a mid-eastern carrier and an Indian conglomerate for a possible stake sale in the low-cost airline, persons familiar with the development indicated. Singh, who is also the CMD, holds a fairly large stake of close to 60 per cent in SpiceJet, which has accumulated losses of an estimated Rs 5,000 crore and a negative net worth.
The airline has been bleeding and needs heavy capital infusion. “The new promoters would need to inject a large amount of capital to revive the business. In this context, the equity has little value,” an analyst explained.
The SpiceJet stock rallied on Wednesday after the news of the prospective sale broke and ended at Rs 50.05 apiece on the BSE, up 12.73 per cent over the previous close. When contacted, a spokesperson for the airline said: “The company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures in accordance with applicable regulations.” FE
