Aviation News

Carlyle Aviation Partners expresses interest in SpiceJet: Report, ET Infra


Carlyle Aviation Partners has reportedly expressed its interest for SpiceJet, Reuters reported on January 9 citing a source-based article by CNBC TV 18.

Earlier, in mid 2023, the airline had sought shareholder approval to issue 5.91% stake in the low-cost airline to Carlyle Aviation Partners–the aircraft financing unit of global private equity giant Carlyle Group.

In December, the cash-strapped airline had got a lifeline in the form of investment from a clutch of funds and high net worth individuals. The Rs 2,254 crore investment was done through the issue of up to 130 million convertible warrants and 320.8 million fresh equity shares.

The fundraising counts 64 investors amongst which there are funds like Elara India Opportunities Fund, Aries Opportunities Fund, and Prabhudas Lilladher, Nexus Global and Mumbai based businessman Harihara Mahapatra and Arjun Juneja of Mankind Pharma.

The shares are to be issued at Rs 50 apiece.

SpiceJet promoter Ajay Singh holds 56.5 % stake in the company, and, out of this, 37.9 % is pledged with various banks. After the transaction Singh will still be the largest stakeholder in the company with 45% stake. There will be no change.

As per reports, SpiceJet will soon start discussion with Boeing for resuming induction of new 737 Max aircraft of which it has more than 200 on order.

ET had reported in December citing sources that SpiceJet has a “short term liability of Rs 6000 crore out of which bulk portion is statutory dues of Rs 550 crore and lessor liability of around Rs 4,200 crore.”

For some time, the airline has been facing a host of issues due to inability to raise fresh capital. It had even defaulted on lease rental payment forcing aircraft lessors to move insolvency court against the airline.

  • Published On Jan 10, 2024 at 10:55 AM IST

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