Logistics

SpiceJet ready for first tranche of ₹500 cr after CCI nod for stake sale

Our Bureau New Delhi | Updated on January 24, 2018 Published on February 19, 2015

spicejet

Earlier, the first tranche was expected to flow in by February 16. On January 15, the Marans, who held over 53 per cent stake in SpiceJet, transferred their entire stake to Ajay Singh.





The stake sale in SpiceJet got the nod from the Competition Commission of India  (CCI) late on Thursday.  On January 15, the Marans, who held over 53 per cent stake in SpiceJet, transferred their entire stake in the airline to Ajay Singh.

Singh has put together a team along with JP Morgan to bail out the cash-strapped airline and will be pumping in up to $200 million into the airline.

SpiceJet expects the first tranche of ₹500 crore to flow into the airline only after the Competition Commission of India (CCI) approves the buyout of Kalanithi Maran’s stake by Ajay Singh.

Transferred stake

Earlier, the first tranche was expected to flow in by February 16. On January 15, the Marans, who held over 53 per cent stake in SpiceJet, transferred their entire stake in the airline to Ajay Singh.

Singh has put together a team along with JP Morgan to bail out the cash-strapped airline and will be pumping in up to $200 million into the airline.

On December 5, last year, the airline owed ₹1,600 crore to debtors.

Daily operations

The airline is currently managing its daily operations from internal cash flows, said sources on condition of anonymity.

Since January, this year, the airline has come up with two sales during which it offered tickets at discounted prices for travel at different times of the year.

Sales proceeds

The proceeds from the sales are probably helping the airline as Sanjiv Kapoor, the Chief Operating Operator of SpiceJet had told BusinessLine,that on a normal day, about one-third of the airline’s revenue came from bookings beyond 30 days.

“If you have a sale or promotion, it is much higher,” he had said.

Published on February 19, 2015
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