SpiceJet: Marans, Kal Airways give control to co-founder Ajay Singh
Moneylife Digital Team 15 January 2015

SpiceJet co-founder Ajay Singh, who holds 4.5% stake has been given control of the ailing carrier by promoters Maran and Kal Airways

 

Beleaguered budget carrier SpiceJet on Thursday said that it decided to transfer ownership, management and control of the company back to its co-founder Ajay Singh from Sun Group chairman Kalanithi Maran and Kal Airways.
 
SpiceJet in a statement, said: "The Board has further directed the company to take further steps to implement and undertake all necessary steps including to make the appropriate application before the Ministry of Civil Aviation, Government of India for seeking approval of the ‘Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet Ltd’.
 
Maran had acquired SpiceJet for close to Rs750 crore in 2010. However, the carrier suffered losses and landed in debt due to cash crunch.
 
Promoters, Maran and Kal Airways hold 53.48% stake, while Ajay Singh hold 4.5% in SpiceJet. Retail investors hold 45.69% in the company that has a total market value of Rs1,000 crore. Major public shareholders in SpiceJet, includes Tata group unit Ewart Investments (1.79%) and Kalpana Singh (1.41%). 
 
SpiceJet closed Thursday 3% higher at Rs18.65 on the BSE, while the 30-share Sensex ended the day 2.7% up at 28,075.
 
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