Amidst mounting speculations of a stake sale, top rung officials of low cost carrier SpiceJet discussed various options to raise nearly $100 million to boost its working capital at a closed door meeting held in New Delhi on Wednesday. The airline has appointed merchant bankers NM Rothschild and Sons (India) Pvt Ltd to suggest various fund raising options.
Requesting anonymity, a SpiceJet official told FE that there was no formal board meeting to evaluate various fund raising options available to the airline. ?If there was a formal board meeting, we would have informed the Bombay Stock Exchange (BSE),? he said.
However, the airline, which reported losses to the tune of Rs 133 crore for the 2007-08 fiscal, has been looking at financial options which include hedge funds and venture capital. ?It is upto the shareholders to decide which is the best option where they get maximum value for their money,? said the official.
The source also said that among other options, New York-based private equity firm WL Ross and Co run by Wilbur Ross, is also in discussions with the airline but is not clear whether the negotiations will be successful.
Meanwhile, shares of SpiceJet on Wednesday surged 10.08% to close at Rs 32.75 on the BSE amid reports that the promoters of the airline have decided not to exit the business. Reports said that the management of SpiceJet is unlikely to change for the time being, but a preferential allotment to US investor WL Ross and Co is on the cards.