SpiceJet promoter Ajay Singh readies $1 billion war chest for Air India bid

Ajay Singh is putting together a $1 billion war chest for his Air India bid, which will be made through a special purpose vehicle (SPV) that’s likely to include participation from two US-based funds, according to people briefed on the matter. Singh didn’t respond to queries.

The SpiceJet NSE -0.32 % promoter will use a combination of his shares in the listed company and equity that will be allocated to him as part of a planned hive-off of his airline’s cargo business as security to raise about $300 million. This will be his personal contribution to the funding vehicle that will bid for the government’s 100% shareholding in Air India.