‘SpiceJet CMD Singh in talks to pare stake’
The promoter of beleaguered carrier SpiceJet, Ajay Singh, is understood to be in discussions with a mid-eastern carrier and an Indian conglomerate for a possible stake sale in the low-cost airline, persons familiar with the development indicated. Singh, who is also the CMD, holds a fairly large stake of close to 60 per cent in SpiceJet, which has accumulated losses of an estimated Rs 5,000 crore and a negative net worth.
The airline has been bleeding and needs heavy capital infusion. “The new promoters would need to inject a large amount of capital to revive the business. In this context, the equity has little value,” an analyst explained.
