facebook-page-view
Advertisement

Goldman Sachs Owns 6% In Spicejet

By Pallavi S

  • 08 Jun 2010

Goldman Sachs has picked up around 6% stake in budget carrier Spicejet by converting warrants into equity. The warrants were converted into 1.5 crore equity shares of Rs 10 each at a premium of Rs 29.5 a piece.

Spicejet scrip rose 5% to close at Rs 59.8 at BSE on Tuesday. Goldman is sitting on almost 100% unrealised gains in the deal and becomes the third largest equity holder in the company (at present the second largest shareholder after the promoters).

The low-cost airline has been subject of interest for the last few months on talks that it is being courted for a takeover by few Indian business groups looking to enter the airline industry. The reports had indicated a much lower offer price to stressed assets investor WL Ross who holds foreign currency convertible bonds worth $80 million in the airlines that will give it almost a third of the total equity of the firm.

Advertisement

The promoters led by NRI businessman Bhula Kansagra owns 12.8% in the company which shrinks to 12% post the equity allotment to Goldman Sachs.

Spicejet that is poised to fly to international routes soon, making it one of the first Indian low cost airlines to go abroad, has been clocking profits for the last few quarters and came up with its maiden annual profit for the year ended March’10.

Advertisement

Share article on

Advertisement
Advertisement