Budget carrier SpiceJet is raising $19-20 million from an international institutional investor against 6-6.5% equity in the company. Merchant banking sources said the investor is likely to be Singapore-an financial giant Temasek, which has been observing the Indian aviation space for some time now. Incidentally, there has also been some speculation that the Hindujas and Rajehas are in talks with SpiceJet for a portion of equity. The current deal can give the airline a valuation of around $320m, which is significant for a start-up with a three aircraft fleet. In the process, SpiceJet has decided to trim its FCCB from $90-70m. |
