Monday, December 11, 2006

SpiceJet to raise $60 million to consolidate

New Delhi: Low-cost carrier SpiceJet is close to raising around $60 million to strengthen its operations over the next two years. Sources in SpiceJet confirmed that the company is in advanced talks with several private equity players but the structure of the deal has not yet been finalised.
It could not be ascertained how much equity stake the company would dilute to raise the additional funds. When contacted, SpiceJet CEO Siddhanta Sharma confirmed that the airline is looking at a fresh round of funding.
SpiceJet had raised $70 million through an FCCB, listed in the Luxembourg Stock Exchange last December. Market analysts expect SpiceJet to dilute around 4-5% stake for the fresh equity infusion.
11/12/06 Sudipto Dey/Economic Times