Family held stake in SpiceJet may be up for sale
14 May 2008
Persistent reports in sections of the media would have the London-based Kansagra family, promoters of SpiceJet Ltd, looking to exit from the venture. The Kansagras hold around 13 per cent in the low cost carrier.
The Kansagra family firm, Royal Holdings Services, is scouting for a buyer for the stake and reports suggest that talks may have been initiated with "several interested parties."
According to reports, the Kansagra's are considering an exit mainly because rising aviation turbine fuel prices playing havoc with the bottomline, making the business model of low-cost airlines commercial unviable.
An added spur for their decision would be the fact that the lock-in period for their stake is already over, which would allow an easy cash out to take place.
The lock-in period expired on 7 February.
