UK-based group to pump in $100 million into SpiceXpress

Budget carrier SpiceJet on Monday said its subsidiary SpiceXpress and Logistics will receive $100 million investment from a UK-based group.

SpiceJet, which is facing financial headwinds and an insolvency plea by an aircraft lessor, had recently hived off SpiceXpress.

Also, last week, the airline said it has no plans to file for insolvency and would invest $50 million to revive 25 grounded planes. The United Kingdom-based SRAM & MRAM Group will invest $100 million in SpiceXpress. Both sides have signed a Memorandum of Understanding (MoU) as part of the investment deal, the airline said in a release on Monday.

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The MoU also comes after a debt restructuring agreement between the carrier and aircraft lessor Carlyle Aviation Partner wherein the latter bought a stake in SpiceXpress at an anticipated future valuation of $1.5 billion (Rs 12,422 crore).

SpiceJet Chairman and Managing Director Ajay Singh said the $100 million investment should help SpiceXpress to grow further and expand and provide a more streamlined and efficient service to its customers.

SRAM & MRAM Group has interests in agricultural and agro-food products, neural networks, artificial intelligence, hedge fund management, hospitality services and solutions, media and publishing, among other areas.

So far this month, lessors have sought deregistration of five SpiceJet planes, a development that also comes against the backdrop of crisis-hit rival Go First shuttering operations and going for resolution proceedings under the insolvency law.

SpiceJet stock was trading at Rs 30.27, up 2.33 per cent on BSE.