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Corporate Jan 2, 2013

SpiceJet shortlists 3 foreign investors to raise $100-150 mn

By Firstbiz Staff

Kalanithi Maran-owned budget carrier SpiceJet has shortlisted three foreign investors to raise $100-150 million by way of equity dilution and/or debt, CNBC-TV18 reported quoting sources.

According to the report, the shortlisted investors include foreign airlines.

Analysts have said SpiceJet is an ideal candidate for investment by foreign airlines. AFP

After the government allowed foreign airlines to pick up stakes in their Indian counterparts, there have been a flurry of rumours about likely deals.

Abu Dhabi-based Etihad Airways is expected to take a decision on its Indian investment next week. Two debt-ridden Indian airlines, Jet Airways and Kingfisher Airlines, are vying for investments from Etihad.

Analysts have said SpiceJet is an ideal candidate for investment by foreign airlines. Earlier there were media reports that Qatar Airways was in talks with SpiceJet to pick up a stake.

Today's report in CNBC-TV18 said the SpiceJet deal is likely to be at an enterprise value of $400-450 million.

The report also said the airline is likely to place new aircraft order worth over $2 billion.

The company's management, however, declined to comment, the report said.

Shares of SpiceJet rose 4 percent on BSE to Rs 47.

The company is keen to sign fundraising deal by 31 March and the dilution of stake will be decided depending on the nature of the investor.

According to the report, SpiceJet is considering placing orders to buy 30-50 B737 MAX or A320 NEOs. The list price of B7373 Max and A320 is $90 million per aircraft.

by Firstbiz Staff

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