Warrants to help Marans retain stake in SpiceJet, to exit when time is right


Warrants to help Marans retain stake in SpiceJet, to exit when time is right


The Marans will stay invested as a majority shareholder in SpiceJet even after Ajay Singh takes over, waiting till the situation at the company and industry improves, so they can take a better exit. 

SpiceJet announced on last Friday that it will transfer ownership from Kalanithi Maran to Singh, its founder. Singh later said he will bring in JP Morgan and another Indian investor into the airline. Maran and his wife currently own just over 58% in the airline through the holding company KAL Airways. 



SL Narayanan, CFO of Maran's Sun Group, said the deal will lead to the entire transfer of stake. However, the Marans currently hold warrants in the airline which will be fully paid up after the deal, by investment of .`80 crore, said Narayanan, which will give them a 23% shareholding in the company. One part of the warrant-to-share conversion will be done in April this year and the remaining, a year later. 


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