SpiceJet said it has received shareholders’ approval to transfer its cargo and logistics services business to its subsidiary, SpiceExpress and Logistics Pvt Ltd, on a slow-sale basis for ₹2,555.77 crore.
“The bearish sale will be considered by SpiceExpress by issuing its shares in favor of SpiceJet,” the company said in a statement.
“The transfer will result in a one-time profit of ₹ 2,555.77 crore for SpiceJet, which will wipe out a major chunk of its negative net worth,” SpiceJet said.
The net worth of the airline as on June 30 was ₹3,300 crore.
The company said it has also received shareholders’ approval for raising funds by issuing eligible securities through Qualified Institutions Placement (QIP). It plans to raise Rs 2,500 crore.
SpiceJet’s CMD Ajay Singh said, “The shareholder approval paves the way for concrete shaping of our long-term plans and unlocking significant value for the company and all its shareholders.”
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