Maran, Kal Air to sell entire SpiceJet stake to Ajay Singh

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Moneycontrol Bureau

Crisis-hit SpiceJet on Friday morning announced that Kalanithi Maran and Kal Airways plan to sell their entire equity to its new promoter Ajay Singh.

The low-cost airline plans to allot 37 lakh non-convertible preference shares to Marans and Kal Airways. These shares will be issued at Rs 1000 per share.

SpiceJet also plans to raise up to Rs 1,500 crore through issues of various securities.

Maran, his wife Kaveri, and Managing Director S Natrajhen have resigned from the SpiceJet board.

The budget-carrier on Wednesday joined the low-fare race in the domestic market when it put on block half a million seats with ticket prices starting at Rs 1,499 under a limited period promotional offer. SpiceJet later announced that on day one itself, booking volumes quadrupled (increased by 4X or 400 percent), indicating continuing pent up demand in the market despite other airlines having held sales earlier this month.

Meanwhile, the beleaguered aviation company is eagerly awaiting the second tranche of investment to the tune of Rs 400 crore on February 15. Singh and a consortium of investors has promised a total of Rs 1500 crore investment in the cash strapped airline in tranches.