Low-cost carrier SpiceJet said its logistics unit has inked a deal for a $100 million investment from UK-based Sram & Mram Group.
What Happened? Cargo-shipping business SpiceJet Xpress, which was recently spun off from its airline parent, has signed an agreement for an infusion to aid the expansion of its business.
Sailesh Lachu Hiranandani, chairman of Sram & Mram Group, said in a statement that the UK firm sees “tremendous potential for [SpiceJet Xpress] in India's fast-growing cargo and logistics market."
Sram & Mram Group has interests in various sectors from agriculture to hospitality.
"We have a great relationship with all our partners. Our lessors have supported us through the thick and thin and continue to do so and we are grateful for their support and confidence," said Ajay Singh, chairman and managing director of SpiceJet.
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Last week, SpiceJet had rubbished speculation that the firm was dangerously close to insolvency after competitor Go First was awarded bankruptcy protection. SpiceJet said it was in active talks with investors to raise funds.
Aircraft lessor Aircastle is pushing for insolvency proceedings against SpiceJet, while a number of lessors have sought repossession of aircraft from SpiceJet 25 planes in its fleet remain grounded.
However, the budget carrier said in its statement last week that it would use $50 million in funds received from the government's emergency credit line guarantee scheme and internal cash accruals to get its fleet flying again.
The deal also follows a debt-restructuring agreement between SpiceJet and lessor Carlyle Aviation Partner that concluded in the latter buying a stake in SpiceXpress at an expected future valuation of $1.5 billion.
Price Action: SpiceJet share price was up 1.93% to trade at ₹30.15 in the afternoon hours of trading on Monday.
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