UK group to invest USD 100 million in SpiceJet’s subsidiary SpiceXpress

SpiceJet’s subsidiary, SpiceXpress, and Logistics will receive a USD 100 million investment from a UK-based group. This investment comes at a crucial time for SpiceJet, as it faces financial challenges and an insolvency plea from an aircraft lessor. Recently, the main airline separated SpiceXpress to focus on its logistics operations.

SpiceXpress

In addition, SpiceJet announced last week that it has no intention of filing for insolvency. Also, plans to invest USD 50 million to bring back 25 grounded planes. As part of the investment deal, the United Kingdom-based SRAM & MRAM Group has signed a Memorandum of Understanding (MoU) to invest USD 100 million in SpiceXpress. This agreement follows a debt restructuring deal between SpiceJet and aircraft lessor Carlyle Aviation Partner. Carlyle acquired a stake in SpiceXpress, valuing it at an estimated future worth of USD 1.5 billion (Rs 12,422 crore).

Ajay Singh, Chairman, and Managing Director of SpiceJet, stated that the investment of USD 100 million will support SpiceXpress in its growth and expansion, enabling it to provide a more efficient and streamlined service to customers.

SRAM & MRAM Group participates in multiple sectors including agriculture, agro-food products, neural networks, artificial intelligence, hedge fund management, hospitality services, and media and publishing.

This month, five SpiceJet planes have been requested for deregistration by lessors. This situation arises amidst the crisis faced by Go First. A competing airline has ceased operations and entered insolvency proceedings. The stock of SpiceJet was trading at Rs 30.27, experiencing a 2.33% increase on the BSE.

In conclusion, the USD 100 million investment by a prominent UK-based investment group in SpiceXpress is a game-changer for the Indian air cargo industry. It will provide the necessary capital infusion for expansion, modernization, and technological upgradation. This partnership is poised to elevate SpiceXpress to new heights and solidify its position as a leading player in the competitive air cargo market.

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