Marans to invest Rs100-crore in SpiceJet, take stake to 48.6 per cent
02 Mar 2012
SpiceJet promoter and chairman Kalanidhi Maran and his family today agreed to invest Rs100 crore to acquire an additional 42.9 million shares, or five per cent of equity, in the low-cost airline.
With this, the stake of Kalanidhi Maran and his family in the low-cost carrier will go up to 48.6 per cent.
The board of directors of Spice Jet at its meeting today inter-alia approved a proposal to allot 42.9 million preferential shares to the promoters.
Maran took over as chairman of SpcieJet in November 2010 after buying out American investor Wilbur Ross.
The fresh equity infusion comes at a time fund-starved Kingfisher Airline is struggling to stay afloat.
Spice Jet had a 16.3 per cent share of the Indian market as of January, making it the fourth largest carrier among the seven and the second largest among low-cost airlines.
SpiceJet had reported a loss of Rs39.3 crore in the December quarter, still making it one of the best performing airlines. The losses have been due mainly to a 90 per cent increase in fuel costs, which offset a 41 per cent rise in the airline's revenues.
SpiceJet operates 264 flights daily, covering 32 domestic destinations and two overseas links to Kathmandu and Colombo.