Mumbai: Istithmar PJSC, the investment arm of Dubai World, has sold most of its 13.39% equity stake in Delhi-based low-fare airline SpiceJet Ltd for Rs169 crore, a top executive of the airline said.

It sold the stock to domestic funds and foreign institutional investors.

Equity exit: Despite the sale, Dubai World still holds FCCBs worth $12 million in the low-budget airline. Punit Paranjpe/Reuters

“All I will say is that we are aware that Istithmar had sold most of its equity investment in SpiceJet. Based on our information, it has sold two-third of its funds to domestic funds and one-third to foreign institutions," SpiceJet chief executive officer Sanjay Aggarwal told Mint. “However, it still holds FCCBs (foreign currency convertible bonds) worth $12 million (Rs56 crore)," he added.

Mint could not immediately reach Istithmar.

Shares of SpiceJet, India’s second largest low-fare carrier, on Friday fell 1.65% to close at Rs53.80 on BSE. The benchmark Sensex index fell 2.68% to close at 15,790.93 points.

The sale gives more space for another foreign investor to buy SpiceJet shares while complying with India’s 49% foreign holding limit in an airline. The current foreign holding in SpiceJet is around 30%.

Billionaire investor Wilbur Ross had in July 2008 injected $80 million in SpiceJet through New York-based private equity fund WL Ross and Co. Llc.Goldman Sachs also invested $20 million in the carrier at that time.