Ajay Singh back on board SpiceJet

Budget carrier SpiceJet Ltd came a full circle on Thursday with its ownership back in the hands of its co-founder Ajay Singh, to whom the current promoter Kalanithi Maran and promoter groups ceded control of 53.48% stake in a multi-layered deal of Rs 1,500 crore.

The Marans could reportedly make an open offer for purchase of further 26% from public shareholders as per the Sebi regulations. The 53.48% bought by Singh is currently worth just Rs 500 crore.

According to sources, Singh, who had launched the airline along with UK-based businessman Bhupendra Kansagra in 2005 after acquiring the beleaguered ModiLuft from industrialist S K Modi, will be infusing close to Rs 1,500 crore to get it out of the turbulent zone. The airline has liabilities of over Rs 2,000 crore.

It is reported that Maran-led Sun Group may also infuse Rs 80 crore in the airline following conversion of their warrants, which would give them a 10% minority stake.

With this, Singh will now be the managing director of the company and is likely to get in his own people to revive it. Sources in the know said the airline's headquarter is mostly likely to be shifted back to Delhi from Chennai.
According to sources, the process of transfer of ownership was expedited to boost the confidence of investors with whom Singh is in talks with.

According to sources, the process of due diligence by prospective investors is currently on and the infusion of funds will not happen before mid-March.