The Hindu Business Line : Kishore Gupta likely to head SpiceJet

New Delhi, July 12 The Delhi-based low-cost airline SpiceJet plans to appoint Mr Kishore Gupta, a member of its board since 2000, as the interim Chief Executive Officer in place of Mr Sidhantha Sharma, who is to leave the airline at the end of the month.

While the company maintains that Mr Sharma is leaving for personal reasons, sources indicated that one of the main reasons for his departure is the presence of several shareholders which made fund-raising a complicated and time-consuming matter. Currently, 56 per cent of the company’s shareholding is with 16 companies and individuals, including the private equity arm of the Dubai Government, Istithmar PJSC (13.42 per cent); Ajay Singh (4.16 per cent); Deutsche Securities Mauritius Ltd (4.13 per cent); and Swiss Finance Corporation Mauritius Ltd (2.52 per cent).

Besides, the promoter group, Royal Holding Services Ltd, has 12.91 per cent stake in SpiceJet. The airline is in the final stages of finalising a deal with the US-based investor W.L. Ross for pumping in $60-65 million. The airline will issue fresh equity to W.L. Ross for the monies it will bring in.

Mr Sharma, who has been associated with the airline since its inception in 2005 and was in July last year appointed as the Executive Director of the company, is likely to join a hospitality major or an international liquor company.

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Kishore Gupta likely to head SpiceJet