SpiceJet revival: Singh says more investors to join in

New Delhi, Jan 15: Stating that the road ahead for SpiceJet is "pretty tough", its original founder and new owner Ajay Singh today said he is in talks with more than one investor for fund infusion into the carrier.

Singh, to whom current promoters Maran family have agreed to transfer their entire over 53 per cent stake as part of a revival plan, said turnaround for the airline could happen in the 2-3 quarters.

"SpiceJet is in a tough position and the road ahead is pretty tough, but I think the road is worth travelling on," Singh told private television channels. Responding to a question on whether an open offer would be made under Sebi norms for acquiring stake in SpiceJet, Singh said he would make an offer if market regulator Sebi asks for it.

If the open offer norms are triggered, then the new investors would have to buy additional 26 per cent stake in SpiceJet from public shareholders. Singh said that making an open offer would depend on legal advice as lawyers are currently looking into those aspects.

"I think if oil prices remain where they are and there is growth in the economy, it should not take more than two or three quarters to turnaround this airline," Singh said. According to Singh, conversations are on with investors who are in the process of looking at the transaction and independently doing diligence. "We are confident that we will find the investors and ensure that SpiceJet survives," he said.

PTI