Sun Group has reportedly in talks with an investor for partially or completely offloading its stake in SpiceJet. The talks are in the final stages and a term sheet may be signed by December. SpiceJet is valued at Rs 1500 crore, which is double the company’s market cap. Sun Group and Kalanithi Maran together hold 53.4 percent stake in SpiceJet.
The airline is restructuring its operations and has cut down its fleet size by ten planes to contain losses and the management has been looking for ways to turn around the airline.
The airline cut second quarter net loss to Rs 310 crore from Rs 559 crore due to improvement in revenue and cost control measures. The result was impacted by one off restructuring expense of Rs 75 crore. The airline posted a combined loss of about Rs 1,000 crore in last fiscal and the senior management has been in discussions with potential investors for last several months to raise capital through debt or equity route.
