FII holdings in Spicejet doubles in December quarter

CHENNAI: Foreign institutional investors have nearly doubled their holdings in billionaire Kalanithi Maran-owned SpiceJet, viewed by industry experts and analysts as the most eligible Indian airline to get foreign direct investment.

The latest shareholding data filed with the stock exchanges show that FIIs have raised their stake in the Chennai-based airline to 5.22% from 2.86% in the third quarter of this fiscal.

SpiceJet posted robust results, with a profit of Rs 102 crore on revenue of Rs 1,602.6 crore in the third quarter, beating expectations. BNP Paribas India Equity Fund acquired a 1.05% stake in the December quarter. The names of other FIIs are not known, indicating that they may have less than 1% stake (in which case a shareholder isn't identified).

SpiceJet has acknowledged that foreign airlines are interested in picking up a stake, but has maintained that nothing has been finalised yet.

Meanwhile, foreign fund holding in SpiceJet’s bigger rival Jet Airways has remained flat at 4.27% in the December quarter versus 4.81% in the September quarter.

Media reports said Etihad Airways is set to buy 24% in Jet Airways and the deal may happen this week. Jet Airways has also acknowledged the interest from foreign airlines.

Both SpiceJet and Jet Airways have benefited from troubles at Vijay Mallaya-owned, debt-ridden Kingfisher Airlines. Kingfisher is yet to disclose its latest share holding pattern. In December, Kingfisher had capped foreign portfolio investment in the company at 3%, which it said would ease the entry of a strategic investor.