Delhi-based domestic air carrier SpiceJet plans to raise around $75 million by issuing preferential shares by September 2010.
The airline has appointed financial services firm Edelweiss, along with IDFC-SSKI Securities, as co-fund manager to find a suitable investor.
“We would like to go for preferential allotment of shares, but the actual financial instrument will be decided only after assessing the response from investors,” SpiceJet chief executive officer Sanjay Aggarwal said.
The low-cost airline needs money to start international operations and expand its fleet. SpiceJet is planning to fly to neighbouring countries such as Sri Lanka, Nepal and Maldives. It is also expanding its network in the domestic market by adding new stations. It currently operates with a fleet of about 20 Boeing 737 jets and commands a share of 12.4% in the domestic market.
The airline has already initiated talks with various investors, including private equity and privately-held business houses to raise the capital. The airline is looking to rope in a strategic investor after the exit of the Dubai-based investment firm, Istithmar. The Dubai firm sold almost its entire 13% stake in the airline last month for about Rs 160 crore.
While most of the full-service carriers are yet to recover from losses, SpiceJet posted a net profit of Rs 109 crore in the last quarter of the fiscal. “We hope to remain profitable this quarter also. The current year would be a better year for us compared with 2009,” Mr Aggarwal said on the sidelines of an international air show here organized by industry chamber FICCI and civil aviation ministry.
About SpiceJet Airlines
SpiceJet’s mission is to become India’s preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers. SpiceJet hopes to fulfill everyone’s dream of flying!
With India’s economic and business growth, the percentage of traveling population is burgeoning. More and more Indians are traveling for both business and pleasure and everyone needs to save both time and money. SpiceJet Airline’s vision is to address that and ensure that flying is for everyone.
SpiceJet
www.spicejet-airlines.in
