Spicejet to raise $80 mn

MUMBAI, DECEMBER 12: Low-Cost carrier Spicejet today said it will raise about $80 million from a clutch of investors, including the Tata group, which may pick up 7.5 per cent stake for $17.2 million.

We have proposals worth $118 million from investors, including the Tatas, Texas Pacific Group Ventures, Istithmar PJSC and Goldman Sachs,” SpiceJet director Ajay Singh said.
He said the company proposed to raise $80 million through preferential allotment to fund its expansion programmes. The equity to be offered would be about 20 per cent of the company’s share capital.
Singh said Tata Investment Corporation has proposed $1.2 million, while Ewart Investments — an investment company of Tata group — offered $16 million.
He added that the Tatas have not put any pre-conditions for the investment. Besides Tatas, private equity firm Texas Pacific group came up with $ 30 million, Istithmar PJSC with $ 25 million and Goldman Sachs has offered $ 5 million.
The board has approved the proposals and recommended these be placed for shareholders’ approval at a meeting proposed to be held on January 11, 2007.
Said SpiceJet director Bhulo Kansagra, “Texas Pacific is one of the best known investment funds with a tremendous experience in aviation. Istithmar and Goldman Sachs have been associated with SpiceJet and have re-iterated their support through their offer of fresh investment.”

Source : Indian express