Wednesday, December 24, 2014


Investor consortium led by Indigo Partners to invest Rs 1400 crore in SpiceJet

Sources with direct knowledge share that US based private equity firm Indigo Partners, which specialises in operating airlines globally, is the anchor investor in Ajay Singh-led consortium to buy SpiceJet. TPG Capital and JPMorgan Infrastructure Fund are the other two funds in the consortium. Sources indicate that the consortium could be investing a total amount of Rs 1400 crore.

Indigo Partners' involvement is key to the deal, said a source, as it has investments in global airlines and understands the operations. Other funds will go ahead with the deal if Indigo Partners signs up for it, a source shared. The US based equity funds are currently conducting due diligence on SpiceJet. ET Now also learns that Indigo Partners may back Ajay Singh to own 26 per cent in SpiceJetBSE 4.78 % to have considerable authority in the company.
"Deal will take a few weeks as the holiday season in the US has slowed down the due diligence process" a direct source said.

Ajay Singh's consortium of funds wants to hold around 76 per cent stake in SpiceJet as part of the deal. The funds want to buy out Maran family's entire stake and put in some part of their total investments into SpiceJet to revive the airline, a source shared.