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SpiceJet's Ajay Singh in talks with middle east carrier, Indian groups for stake sale?

SpiceJet may be looking at possible stake sale to a foreign carrier, or Indian conglomerates.

August 03, 2022 / 10:18 AM IST
Ajay Singh, Chairman and Managing Director of SpiceJet

Ajay Singh, Chairman and Managing Director of SpiceJet

 
 
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Sources close to Network18 have informed that SpiceJet promoter Ajay Singh could be in talks with a middle-eastern carrier for a possible stake sale. The airline is also in discussions with a couple of Indian conglomerates, to offload partial stake in the airline. The shares were upbeat at the start of the session on August 3, rising by over 5 per cent at 9:30am.

Promoter Ajay Singh presently holds around 60 percent stake in the airline. Couple of Indian conglomerates are also in the fray to buy a stake in the airline.

When contacted, a SpiceJet spokesperson said, the company 'continues to be in talks with various investors regrading sustainable financing. The airline will make 'appropriate disclosures, in accordance with applicable regulations'.

Just a day ago, the airline confirmed that it has cleared all principal dues with the Airport Authority of India (AAI), and had reverted to advance payment mechanism for daily operations.

The airline has been under the spotlight after a slew of incidents of technical snags on its flights, and one of its Dubai-based lessors asked the regulator to deregister three of SpiceJet's planes.

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Last month, Moneycontrol reported that the airline lost market share because it didn’t deploy enough seats. Its slot utilization remains low, as experts told Moneycontrol that either SpiceJet could not have its assets ready to be deployed, or does not have the appetite to stand losses.

The airline is yet to release its Q4FY22 results, as the numbers are being re-authenticated due to a ransomware attack that impacted its IT systems.
Moneycontrol News
first published: Aug 3, 2022 09:49 am
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