SpiceJet stocks hits the upper circuit 10%. On Thursday, the promoters of the beleagured airlines SpiceJet Kalanithi Maran and KAL Airways have decided to transfer the ownership of the company to ex-promoter Ajay Singh. The procedure for the transfer of ownership would begin immediately with approval request being sent to the aviation ministry. Maran & KAL Airways together hold 53.5% Stake In SpiceJet.
According to reports, Singh plans to infuse Rs 1500 crore into SpiceJet in three tranches as a part of revival plan. The first tranche of Rs 500 crore is expected by 25 January 2015, with two more tranches of equal amounts by March this year. The new investors, which reportedly include JP Morgan, are also expected to seek exemption from an open offer from the Securities and Exchange Board of India (Sebi), reports added.
In an interview with CNBC TV18, Ajay Singh, Co-founder, Spicejet, said that SpiceJet has provided to the Ministry of Civil Aviation the competent authority a plan for revival and restructuring. There are certain details in that plan which are confidential at this time. Talking about the reasons to reenter into aviation and impact of fall in crude prices, he said, "The timing is pretty good because as you mentioned oil prices are at a historic low.There is a very supportive government which we believe will promote growth over the next several years in the Indian economy. With growth comes great deal of aviation traffic. The number of Indians that are flying today is still a very miniscule 3 percent. Clearly that number is bound to grow. Importantly also besides the fact that obviously valuation is low and there can be significant shareholder return I also believe that this is something which is in the public good because failure of a significant airline like SpiceJet increases the burden on consumers who have to pay higher fares. It obviously impacts employees and families of people who lose jobs".
16/01/15 IIFL
According to reports, Singh plans to infuse Rs 1500 crore into SpiceJet in three tranches as a part of revival plan. The first tranche of Rs 500 crore is expected by 25 January 2015, with two more tranches of equal amounts by March this year. The new investors, which reportedly include JP Morgan, are also expected to seek exemption from an open offer from the Securities and Exchange Board of India (Sebi), reports added.
In an interview with CNBC TV18, Ajay Singh, Co-founder, Spicejet, said that SpiceJet has provided to the Ministry of Civil Aviation the competent authority a plan for revival and restructuring. There are certain details in that plan which are confidential at this time. Talking about the reasons to reenter into aviation and impact of fall in crude prices, he said, "The timing is pretty good because as you mentioned oil prices are at a historic low.There is a very supportive government which we believe will promote growth over the next several years in the Indian economy. With growth comes great deal of aviation traffic. The number of Indians that are flying today is still a very miniscule 3 percent. Clearly that number is bound to grow. Importantly also besides the fact that obviously valuation is low and there can be significant shareholder return I also believe that this is something which is in the public good because failure of a significant airline like SpiceJet increases the burden on consumers who have to pay higher fares. It obviously impacts employees and families of people who lose jobs".
16/01/15 IIFL
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