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| Edited By: |Source: |Updated: Mar 17, 2018, 03:29 AM IST
The race to buy a big stake — even majority — in budget carrier Spicejet Ltd is getting hotter.
Media baron Kalanithi Maran has hiked his bid for 51% stake in India’s second-largest no-frills airline by around 14% to Rs800 crore from Rs700 crore earlier.
When the owner of Sun Network, south India’s biggest media company, had begun talks some months back (DNA first reported this on February 19), he had offered Rs450 crore for a majority stake.
A SpiceJet source, who did not wish to be named, said an entity belonging to the Anil Dhirubhai Ambani Group (ADAG) is also carrying out due-diligence at present.
SpiceJet has been desperately looking to raise funds for its expansion plans. The airline will begin flying overseas by the middle of this year.
Company and merchant bank sources said Religare Enterprise Ltd, the financial services company promoted by Malvinder Singh of Ranbaxy, is also keen on investing.
They said Maran has hiked his bid looking at the interest of other investors in the company.
“Maran knows SpiceJet’s need for cash. That is why he had made discounted offers earlier. He is now ready to pay Rs60-63 per share instead of the Rs55 per share,” said one of the sources.
Maran, Religare and ADAG could not be reached for comment.
On Tuesday, the SpiceJet stock closed 0.30 points higher at Rs57.85 per share from Monday’s closing price of Rs57.55 per share. It touched a high of Rs60.25 a share during the day. The airline’s market capitalisation stood at Rs1,395 crore.
“He (Maran) is acting fast so that others don’t trump him,” said the source.
But company sources said the dark horse could be Religare, which is keen on entering the commercial aviation space.
“Going by the current offers, the final valuation for a 51% stake in the SpiceJet could settle around Rs 900-950 crore,” said the source.
He said fresh rounds of stake-sale discussions started when one of SpiceJet’s promoters, Bhupendra Kansagra, had come to New Delhi on Monday from London.
Kansagra and family own 13% stake in the airline.
“He (Kansagra) is seriously looking to cash out but Ajay Singh, who has around 4.5% stake, does not want to let that happen at this point in time,” he said.
Singh was not available for comment.
Interestingly, US-based turnaround investor Wilbur Ross, who has put $80 million into the airline, is also looking at pumping in more funds.
“Right now, he (Ross) is in no mood to exit the company. He is interested in putting in more funds. If needed, the company may even issue fresh equity to bring in new investors,” said a company source in the know.
