WL Ross to invest $100 mn in Spicejet

Low cost carrier Spicejet said on Monday US-based private equity company WL Ross & Co LLC will invest $100 million (over Rs 420 crore) in the company for business requirements.

Shareholders of Spicejet, including Royal Holding Services Ltd, Istithmar and Ajay Singh and Goldman Sachs, in capacity as a bondholder of the company, on Monday entered into definitive agreements with WL Ross & Co to this effect, Spicejet said in a filing to the Bombay Stock Exchange.

Besides, Goldman Sachs has also agreed to subscribe to equity warrants of the company under the preferential issue guidelines of the Securities and Exchange Board of India, subject to receipt of requisite approvals, Spicejet added.

Shares of Spicejet reacted sharply to this news and surged as much as 9.59 per cent from last close to touch an intra-day high of Rs 31.40. The shares of the company were trading at Rs 30.35, a jump of 5.93 per cent from its  previous closing price and over 18.10

lakh shares exchanged hands on the BSE in the morning trade.

Earlier, on July 15, SpiceJet had said a private equity firm led by billionaire Wilbur Ross would invest $80 million (Rs 345 crore) in the low cost airline. 

"WL Ross is one of the largest and the most experienced investor in the world. With this investment, we have no doubt that SpiceJet will fulfil its promise of emerging as India's leading airline," SpiceJet board member Bhulo Kansagra had said.

This would be WL Ross' second investment in India. Last year, WL Ross had acquired apparel maker OCM India for about $37 million.

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