The Hindu Business Line : SpiceJet to raise $80 m thru 20 pc preferential issue

Low-cost airline SpiceJet on Tuesday announced it would raise about $ 80 million by issuing equity shares through preferential allotment to domestic and foreign investors, to fund its expansion programmes. The equity to be offered would be about 20 per cent of the company's share capital.

The company has received investment proposals worth $ 118 million from different investors, including the Tatas, Texas Pacific Group Ventures, Istithmar PJSC and Goldman Sachs. Commenting on the offer of the Tata Group, Mr Ajay Singh, Director SpiceJet said, "Given the approval from the board, Tata group is set to acquire 7.5 per cent stake in the company. Tata's investment would be symbolic. Apart from the financial aspect, we will ask it to participate through its managerial experience and network."

The investment proposals include an offer of Tata Investment Corporation at $ 1.2 million, Ewart Investments Ltd - an investment company of the Tata group at $16 million, $ 30 million from private equity fund, Texas Pacific group, $ 25 million from Istithmar PJSC, $ 5 million from Goldman Sachs and $ 7 million from IL& FS.

The board has approved the proposal and recommended that these would be placed for shareholders approval at the ensuing meeting proposed to be held on Jan 11, 2007.

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