SpiceJet kicks off cargo business sale; valuation at Rs 2,500 crore

SpiceJet, India’s second-largest private airline, kicked off the process of hiving off its logistics business to its subsidiary SpiceXpress as it looks to raise much-needed capital. On Tuesday, the company sought its shareholders’ approval to complete the process and to raise up to Rs 2,500 crore via a qualified institutions placement (QIP).

It is in talks with multiple private equity investors as it tries to sell shares in the logistics arm to raise money.

While sources in the airline had earlier indicated that they value the business at $1 billion, the company on Tuesday pegged it at Rs 2,555.77 crore based on an independent valuation.