SpiceJet's Ajay Singh may sell up to 10% stake in airline: Sources

SpiceJet Chairman and Managing Director Ajay Singh may trim his shareholding in the financially troubled airline by 10 per cent, sources told Zee Business. At the end of the June quarter, Singh was the single biggest shareholder in the airline with his family owning more than 43 per cent stake. 

Based on his current shareholding in the company, offloading a 10 per cent interest will still allow him to maintain his status as the largest shareholder and retain control of the company.

ICICI Securities, GM Financials and DAM Capitals were chosen as merchant bankers for the stake sale, according to the sources. 

The names of merchant bankers are likely to be announced formally after the meeting of the airline’s board on Wednesday, they said. 

On July 26, the board of the company approved a proposal to raise up to Rs 3,000 crore through the qualified institutional placement (QIP) route

A QIP allows a listed company to raise working capital by way of issuing equities or other securities to potential qualified institutional buyers. 

(This story will be updated shortly) 

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