SpiceJet gets investors’ nod to transfer cargo unit to arm

Flight plan: SpiceJet plans to raise ₹2,500 crore via qualified institutional placement.   | Photo Credit: Special Arrangement

SpiceJet said it has received shareholders’ approval to transfer its cargo and logistics services business to its subsidiary, SpiceXpress and Logistics Private Ltd., on a slump-sale basis, for ₹2,555.77 crore.

“The consideration for the slump sale shall be discharged by SpiceXpress by issuance of its shares in favour of SpiceJet,” the company said in a statement.

“The transfer will result in a one-time gain of ₹2,555.77 crore for SpiceJet, wiping out a substantial portion of it’s negative net worth,” SpiceJet added.

The airline had a negative net worth of ₹3,300 crore as on June 30.

The company said it had also received the shareholders’ approval to raise funds by issue of eligible securities through Qualified Institutions Placement (QIP). It plans to raise ₹2,500 crore.

“The shareholder approval paves the way for our long-term plans to take a concrete shape and result in unlocking significant value for the company and all its shareholders,” said Ajay Singh, CMD, SpiceJet.

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Printable version | Oct 16, 2021 6:26:29 AM |

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