New Delhi: Troubled budget airline SpiceJet Ltd, which is on recovery path, has declined an investment offer from one of the funds managed by the US-based JP Morgan Chase & Co. Ajay Singh-promoted low-fare carrier says the valuation offered by the MNC does not match up to its expectation. "They (JP Morgan Chase) are interested in investing but Ajay Singh does not want to bring them on board at the present CMP (current market price). He wants to further improve valuation of the company before getting them (JP Morgan Chase) in," a senior company executive told dna.
SpiceJet chief operating officer (COO) Sanjiv Kapoor confirmed there was "investor interest" in the Gurgaon-based airline. "With improving performance of the airline, there is investor interest. Its valuation is also continuously improving under Ajay Singh," he said.
According to sources, the airline needs around Rs 400 crore recapitalisation to fund its aircraft acquisition and pay off its creditors' dues. At present, it is able to almost entirely meet its working capital needs through internal accruals. After Singh took over the no-frill airline, which he has managed to pull out of the jaws of death, from the former promoter Kalanithi Maran, the operational and financial performance of the airline has considerably improved. This has enhanced its valuation.
20/04/15 Praveena Sharma/Daily News & Analysis
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SpiceJet chief operating officer (COO) Sanjiv Kapoor confirmed there was "investor interest" in the Gurgaon-based airline. "With improving performance of the airline, there is investor interest. Its valuation is also continuously improving under Ajay Singh," he said.
According to sources, the airline needs around Rs 400 crore recapitalisation to fund its aircraft acquisition and pay off its creditors' dues. At present, it is able to almost entirely meet its working capital needs through internal accruals. After Singh took over the no-frill airline, which he has managed to pull out of the jaws of death, from the former promoter Kalanithi Maran, the operational and financial performance of the airline has considerably improved. This has enhanced its valuation.
20/04/15 Praveena Sharma/Daily News & Analysis
