SpiceJet subsidiary SpiceXpress and Logistics will receive a $100 million investment from a UK-based group, the budget carrier said on Monday.
SpiceJet, which is facing financial headwinds and an insolvency plea by an aircraft lessor, had recently hived off SpiceXpress. With no plans of filing insolvency the airline, last week announced that it will invest $50 million to revive 25 grounded planes.
As per the airline, its subsidiary SpiceXpress and the United Kingdom-based SRAM & MRAM Group have signed a Memorandum of Understanding (MoU) as part of the $100 million investment deal.
The $100 million investment from SRAM & MRAM group 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).
As per SpiceJet Chairman and Managing Director Ajay Singh, the $100 million investment should further SpiceXpress’s growth and expansion and help the carrier offer 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 the 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.
The SpiceJet stock was trading at Rs 30.27, up 2.33 percent on BSE.