Saturday, November 18, 2006

SpiceJet to raise $60 mln through stake sale

New Delhi: Budget airline SpiceJet Ltd. plans to sell equity to raise $60 million to upgrade technology besides improving reservation, customer support and airport facilities, a top official said on Friday.
The company was in talks with Indian and foreign strategic investors for a "plain-vanilla equity sale" and hoped to finalise terms and conditions with investors by end-December, Chairman Siddhanta Sharma told Reuters in an interview.
"This will not be for fleet expansion. We will be adding to our spares stock ... this cash would also help to tide over a lean season," Sharma said, but declined to say how much equity the company would sell.
Spicejet has already raised money twice -- via a $80 million overseas convertible bond issue and a $12.5 million stake sale to Dubai investment firm Istithmar -- since it began operations in May 2005, officials said.
17/11/06 Nitin Luthra/Reuters India