Carlyle set to buy 5.91% stake in SpiceJet: Report

Updated : Aug 02, 2023 16:00
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Editorji News Desk

Carlyle Aviation partner will acquire 5.91% stake of SpiceJet at Rs 48 per share, reported the Economic Times. As per the report, SpiceJet has sought shareholder approval to issue the stake.

The report also mentions that Carlyle which has the largest exposure among other lessors, will convert its dues of over $28 million to equity. The airline's shares have been valued at Rs 48 per equity share by the lessors, which is higher than the current price of the airline which is trading at Rs 29 at the stock exchange.

Also Read: SpiceJet board to consider raising fresh capital

The company reportedly will issue 20% of equity shares to promoter Ajay Singh at Rs 10 per share against the infusion of Rs 500 crore that Singh is making into the company. 

In a statement, SpiceJet said the fresh equity infusion by Singh, who is also the Chairman and Managing Director, will help the carrier in accessing additional credit facilities of Rs 206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS).

Ajay Singh told Economic Times that the partnership with Carlyle would help SpiceJet to boost the airline's business.

"The transaction will substantially deleverage our balance sheet thereby allowing us to access fresh funds at a competitive rate and we aim to follow suit with other lessors as well in the near term”, Singh told Economic Times. 

SpiceJet

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