SpiceJet said Monday that its subsidiaries SpiceXpress and Logistics will receive a $100 million investment
Posted Date – Mon, 5/15/23 at 10:35am
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New Delhi: Low-cost carrier SpiceJet said on Monday that its subsidiary SpiceXpress and Logistics will receive a $100 million investment from a British group.
SpiceJet, which recently spun off SpiceXpress, is facing financial headwinds and a bankruptcy filing from an aircraft lessor.
Also, last week, the airline said it had no plans to file for bankruptcy and would invest $50 million to restore 25 grounded planes. UK-based SRAM & MRAM Group is investing $100 million in SpiceXpress. As part of the investment agreement, the two parties have signed a memorandum of understanding (MoU), the airline said in a release on Monday.
The MoU also follows the carrier’s debt restructuring agreement with aircraft lessor Carlyle Aviation Partner, in which the latter bought a stake in SpiceXpress at an expected future valuation of $1.5 billion (Rs 12,422 crore).
Ajay Singh, chairman and managing director of SpiceJet, said the $100 million investment will help SpiceXpress grow further and provide a more streamlined and efficient service to its customers.
SRAM & MRAM Group has interests in areas such as Agriculture and Agricultural Products, Neural Networks, Artificial Intelligence, Hedge Fund Management, Hospitality Services and Solutions, Media and Publishing.
Lessors have sought to cancel the registration of five SpiceJet planes so far this month, a development that also comes against the backdrop of crisis-hit rival Go First shutting down operations and undergoing resolution proceedings under bankruptcy law.
SpiceJet shares were trading at Rs 30.27, up 2.33 percent on the BSE.
