SpiceJet to receive $65 million in a week as second tranche

SpiceJet to receive $65 million in a week as second tranche


New Delhi: Low-cost carrier SpiceJet will receive about $65 million within a week as the second tranche of investment by US private equity firm WL Ross and Co and by Goldman Sachs.

Wilbur Ross had earlier agreed to invest $80 million in the Delhi-based carrier by buying out its foreign currency convertible bonds from Goldman Sachs Group Inc of the US and Istithmar PJSC, a UAE-based investment house. He also managed to get Goldman to invest $20 million in SpiceJet. The investment was to be made in two tranches.

“The second tranche of about $65 million will be received within a week," SpiceJet Director Kishore Gupta told PTI.

He also said that both Ross as well as India head of WL Ross and Co Ranjeet Nabha will join the airline’s board as soon as security clearance is given by the government.

“We have written to the government asking for its nod to bring Ross and Nabha on the Board of our company. The two are waiting for security clearance to be given after which they will join," he said.

There are seven people on the Board of SpiceJet currently, he added.

The airline recently announced introduction of new flights to enhance connectivity on its existing network. The new flights offer additional connections between key cities like Delhi, Hyderabad, Chennai, Pune and Coimbatore on a daily basis.

It has about 10% market share currently and operates a fleet of 15 aircraft.