SpiceJet to get Rs 400 crore infusion, Ajay Singh plans to pump Rs 1500 by April

NEW DELHI: SpiceJet, under new management control after a rescue led by former promoter Ajay Singh, is likely to get an infusion of Rs 400 crore by Monday, its first since the bailout. This follows approval by Competition Commission of India (CCI) for the deal leading to change in ownership.

“We got the CCI approval yesterday,” SpiceJet’s acting chief financial officer Kiran Koteshwar told ET on Friday. “We are working to ensure that the change in ownership to Ajay Singh is implemented. Our funds will arrive the moment that is complete.” The money is coming from former promoters, the Marans, and it will be in the form of warrants, said people aware of the plan.

Singh's plan involves pumping about Rs 1,500 crore into the airline until April-end, according to the revival strategy approved by the civil aviation ministry. This amount is equivalent to the airline’s immediate liabilities.

Koteshwar said the amount due to lessors is much less now. “Not just that, we are also paying all our vendors on a regular basis and will clear their dues too as and when we have money,” he told ET. He said the airline is restoring services to former levels. “We are reporting better numbers in terms of operations and hope to improve it further,” he added.