Wilbur Ross and his India pointman Ranjeet Nabha have joined the board of the low cost carrier SpiceJet, the company has informed stock exchanges. WL Ross & Co had last year invested $80 million in the carrier. Goldman Sachs also invested $20 million along with WL Ross. Nabha is the India CEO of WL Ross & Co.
Ross holds foreign currency convertible bonds that can be converted into equity by December 2010. If Ross converts FCCBs by next year, his stake in SpiceJet could go upto 32%.
Government regulations currently allow only up to 49 per cent foreign direct investment and 100 per cent investment by a non-resident Indian through the automatic route.
The other foreign shareholders include Dubai government’s private equity arm Istithmar, which owns 13.4 per cent of the carrier, while FIIs hold about 10 per cent equity in the company.