No independent valuation needed for SpiceJet's preferential share sale: Sebi

Mumbai: The Securities and Exchange Board of India (Sebi) said SpiceJet's proposed preferential share issue to aircraft lessors as part of its plan to restructure its outstanding lease liabilities need not have independent valuation.

The capital markets regulator, in an informal guidance to the airline, said the aircraft lessors will have to comply with the regulations of holding the shares for a minimum of six months.

The stressed airline had written to Sebi seeking clarification on whether the share allotment will fall under which section of the Issue of Capital and Disclosure Requirements Regulations.


The informal guidance, which is the regulator's opinion on the matter and not an order, is expected to come as a relief to SpiceJet.

SpiceJet's board on February 27 had approved issuing fresh equity shares worth ₹244.28 crore to Carlyle Aviation Partners at ₹48 per share or the Sebi-determined price, whichever is higher.

The stock was trading at around ₹37 at the time of the announcement. On Wednesday, SpiceJet shares jumped 7.8% to ₹26.05. Following the transaction, the company said that the aircraft leasing firm would own 7.5% stake in the airline.