News: Tata group picks up 6% stake in Spicejet

(PTI 01/02/2007) Mumbai - Low-cost carrier Spicejet has allotted a total of 2.70 crore equity shares to Tata group company Ewart Investment and BNP Paribas Arbitrage Fund out of the proposed preferential issue of 7.20 crore equity shares.

Ewart Investments was allotted 1.4 crore shares, while BNP Paribas Arbitrage Fund received about 1.30 crore shares from the airline company, Spicejet informed the BSE.

A company official said the allotment to Ewart Investments represents 6 per cent stake in the carrier while that of BNP was 4.5 per cent.

The shares so allotted were issued at a price of Rs 52.69 per equity share, raising an amount close to Rs 143 crore.

Other investors apart from Tata Group and BNP Paribas, who also picked up significant stakes in Spicejet, are Ishtitmar, Telemnix, Goldman Sachs and UK's KBC Fund.

Spicejet had informed the Bombay Stock Exchange recently that it would offer equity shares on preferential basis to various foreign and domestic investors.

In December, it was planning to sell USD 80 million worth of shares on a preferential basis. The company had, however, received offers amounting to USD 118 million. Texas Pacific group, a leading global private investment which also wanted to invest in the carrier later withdrew the offer.

Spicejet's offering of shares on preferential basis was aimed at raising funds for non-aircraft capacity expansion purposes like, investment in engineering and strengthening call centres.

Shares of the company closed at Rs 58.65, down 0.42 per cent at the Bombay Stock Exchange.