Carlyle to pick up 5.91% stake in SpiceJet; stock climbs ~6%

2 Aug 2023 , 01:44 PM

SpiceJet is seeking shareholders’ approval to sell a 5.91% stake in the low-cost carrier to Carlyle Aviation Partners, the aircraft finance arm of global private equity firm Carlyle Group.

The leasing company with the most exposure among other lessors will convert its dues of more than $28 million to equity. The lessors have determined that the airline’s equity stake is worth Rs 48 per equity share. This is more than the airline’s current share price, which is Rs 29 on the stock exchange.

At around 1.37 PM, SpiceJet was trading 5.70% higher at Rs 30.98, against the previous close of Rs 29.31 on NSE. The counter hit an intraday high of Rs 32.25.

The company will additionally issue 20% equity shares to promoter Ajay Singh at a price of Rs 10 per share.

This is in addition to the Rs 500 crore infusion Singh is making into the company in order for it to be eligible for credit under the government’s Emergency Credit Line Guarantee Scheme (ECLGS). He currently holds a 59% stake in the company, 47% of which is committed to banks.

For airlines to fully benefit from the plan, an equivalent equity infusion from the company’s promoters is required. The scheme is capped at 100% of the company’s fund-based or non-fund-based debt, or Rs 1,500 crore, whichever is less.

For feedback and suggestions, write to us at [e-mail]