VCCircle

After adjusting for currency variations, the loss of Istithmar stands at $7.2 million (Rs 33.7 crore).

VCC Adds: Istithmar exits SpiceJet at a loss of $7.2 million: Data reported to the stock exchanges suggest that the Istithmar, Dubai World's private equity arm, sold 97% of its stake in the no-frills airlines to Birla Mutual, Reliance Mutual, DWS Investments and few other entities for Rs 164 crore. It probably offloaded the rest of the 3% stake too at the same price – Rs. 52 per share. Istithmar first bought into SpiceJet in October 2005. It added more shares to its kitty in February 2007. At both times, the purchases were made through preferential allotment. VCCircle estimates that Istithmar exited SpiceJet at a loss of Rs 24.7 crore and after adjusting for currency variations, the loss stands at $7.2 million (Rs 33.7 crore). It may also be noted that the CEO of Istithmar, David Jackson, resigned from his post last month.

Original Story

Istithmar World Capital, the investment arm of Dubai World, has sold its entire 13.4 percent holding in budget airline SpiceJet, a source with direct knowledge of the deal said on Friday.

Istithmar sold its stake via two block deals for a total consideration of around 1.6 billion rupees to a couple of domestic funds and an FII, the source said, which three other bankers confirmed.

Bank of America Merrill Lynch was the sole arranger of the deal, they said.