Original promoter of SpiceJet Ajay Singh becomes its owner again

The original promoter of the budget airline SpiceJet Ajay Singh finally became its owner again on Monday with the completion of the process of share transfer from the former promoter Kalanithi Maran, chairman of the Sun Group, to him.

“With the physical transfer of shares to his (Singh’s) account, and clearance from the CCI (competition commission of India) and Sebi (stock exchange regulator), he is now officially the owner of SpiceJet,” said a reliable source, who spoke on condition of anonymity.

A deal for share sale and purchase was inked between Maran, his company Kal Airways and Singh last month. With this Singh now owns 58.46% stake in the Gurgaon-based airline and can now begin scouting for investors for recapitalisation of cash-starved SpiceJet.

Singh, in his revival plan submitted to the government, has committed to bring in Rs 1500 crore by April-end. The source said Singh will not have to make an open offer, as is mandated by Sebi in the case of an entity buying minimum 25% stake in a company, as the change of control of ownership has been approved by a “competent authority”, which is ministry of civil aviation.

“The ministry has approved the scheme (change of control) so the open offer by Singh is not required,” he said. The airline had earlier said that the share transfer was pursuant to a “scheme of reconstruction and revival for the takeover of ownership, management and control of SpiceJet Limited to be filed before the competent authority, the ministry of civil aviation”.