Tata group investment arm Tata Investment Corporation Ltd is likely to raise its stake in SpiceJet from 7 per cent to 11 per cent, and further to 15 per cent, a highly placed industry source said. The Tatas, however, denied the development. On January 11, 2006, SpiceJet approved the 25 per cent issue of fresh shares worth $72 million. While the Tatas will be allotted shares worth $17.5 million, Istithmar will get shares worth $25 million, Goldman Sachs $15 million, BNP Paribas $5 million, KBC Fund UK $2.5 million, and Telemnix $7 million. The move was to raise funds for fleet expansion.With the dilution, the stake held by the promoters, the Kansagara family, has come down from 17 per cent to 13 per cent. SpiceJet raised its equity base from Rs 185 crore to Rs 242 crore through this issue of fresh shares. Earlier in December, SpiceJet said that it was planning to sell $80 million worth of shares on a preferential basis; the company had, however, received offers worth $118 million. Texas Pacific group, a leading global private investment firm, wanted to invest $30 million, but withdrew its offer.
