A SpiceJet plane.
Credit: PTI File Photo
In a recent development reported by The Economic Times, Mumbai-based businessman Harihara Mahapatra and his wife, Preeti Mahapatra, are set to invest Rs 1,100 crore in SpiceJet, marking a significant move to alleviate the financial challenges faced by the flailing airline. The funding initiative is part of a broader plan wherein a consortium of funds and high net-worth individuals will contribute a total of Rs 2,254 crore through convertible warrants and fresh equity shares.
According to the detailed funding proposal reviewed by ET, the Mahapatras' investment will secure a 19 per cent stake in SpiceJet. Post the conversion of warrants, Aries Opportunities Fund will hold 3 per cent, and Elara Capital will hold 8 per cent. This investment is expected to lead to a dilution of SpiceJet promoter Ajay Singh's current shareholding from 56.49 per cent to at least 38.55 per cent, subject to shareholder approval.
Harihara Mahapatra and Preeti Mahapatra serve as promoters of Mahapatra Universal Limited, a Mumbai-based conglomerate with businesses in various sectors, including real estate, infrastructure, consulting, consumer, and retail.
Who is Harihara Mahapatra?
According to the Mahapatra Universal Limited's website, Harihara Mahapatra, the Managing Director of the company, has over 16 years of entrepreneurial experience. Holding an MBA degree, his focus has been on "organization building and human capital development". Mahapatra has been involved in leading investments across diverse sectors, ranging from manufacturing to financial services, the website reads.
Mahapatra once had plans to build the country's tallest building in Gujarat, but it didn't ultimately materialise.
Harihara also had run-ins with the law with media reports stating an FIR was lodged against him with the Aurangabad police after a couple got duped out of Rs 5.5 crore over a building project which never came up.
Who is Preeti Mahapatra?
Preeti Mahapatra, who "Founded and Mentored Mahapatra Universal Limited", holds a master's degree in International Business (Finance) and Export Management. Per the website, she has played a key role in integrating multiple companies within the group.
The website also notes that Preeti runs a non-profit organisation, focusing on national-level social causes for the underprivileged in areas such as education, shelter, disaster management, and more.
In 2016, backed by the Bharatiya Janata Party (BJP), Preeti unsuccessfully ran as an independent candidate in the Rajya Sabha election from Uttar Pradesh, challenging (then) Congress leader Kapil Sibal. Interestingly though, she declared assets worth only Rs 23 crore and liabilities amounting to Rs 6 crore in her election affidavit filed that year.
The Rs 1,100 crore investment by the Mahapatra couple in SpiceJet is expected to provide the airline with a crucial financial lifeline.