Business News

• Spice Jet doesn’t need to raise money
• SBI rights issue may come next fiscal
• Adani ties up with Japan’s Kowa Co

Spice Jet doesn’t need to raise money

Indian budget carrier Spice Jet Ltd does not need to raise capital to fund its aircraft purchases from Canada's Bombardier Inc., its chief executive officer Neil Mills said on Friday.

SpiceJet in November agreed to buy as many as 30 Nextgen turboprop air craft from Bombardier for about $915 million (`4,110 crore). The initial order was for 15 planes. The company, India's most profitable airline, will fund the purchase through cash in hand and credit, Mills said in an interview.

“From our point of view, we are looking at predominantly export credit funding. We are posting profits, options for funding have grown”, Mills said. “We are not looking at additional capital rising in the short term”.

SBI rights issue may come next fiscal

The Indian government may infuse `15,000 crore ($3.3 billion) into the country's largest lender State Bank of India (SBI) in the next fiscal year via a rights issue, a finance ministry official said on Friday.

The money will be allocated in the budget for the 201112 fiscal year that begins in April, the official said.

SBI has asked for capital infusion of `25,000 crore for the next two fiscal years from the government, the official added.

Meanwhile, banking Secretary R. Gopalan said share sale to existing holders may be delayed until the government finds the money to invest in the rights offer.

Adani ties up with Japan’s Kowa Co

Adani Enterprises Ltd, he flagship company of Ahmedabad based Adani Group, on Friday signed a long term pact with Japan's Kowa pinning Co. Ltd. Yoshiro Miwa, president and chief executive officer, Kowa, and Gautam Adani, chairman, Adani Group, signed the business alliance agreement on Fri day. Under this pact, Kowa will act as an agent for the Adani Group for attracting Japanese firms to set up their units in Mundra Port and Special Economic Zone Ltd.