Abu Dhabi Investment Authority acquires SpiceJet shares from open market

Leading private airline Spicejet has received growing investor interest, evident from the fact that the Abu Dhabi Investment Authority (ADIA) has reportedly acquired shares of the airline from the open market. Confirming the development, a SpiceJet spokesperson said, "Yes, ADIA has acquired shares of the airline from the open market."

SpiceJet's recent capital infusion of Rs 1,060 crore through a preferential issue, along with efforts to streamline its balance sheet and resolve outstanding issues with lessors, such as the Rs 250 crore settlement with Celestial Aviation, has garnered significant attention from Foreign Institutional Investors (FIIs). This positive trajectory has led to a notable surge in SpiceJet's stock price, doubling its value.

The ownership of Foreign Institutional Investors (FIIs) in SpiceJet has witnessed a remarkable surge, increasing by 5.88 per cent, from 0.33 per cent in December 2023 to 6.21 per cent in February 2024.

Key investors, including Aries Opportunities Fund Limited, Elara India Opportunities Fund Limited, and aircraft leasing giant Carlyle Aviation Partners, already have a substantial stake in SpiceJet.

As per sources close to the airline, part of the funds infusion will be allocated towards settling past liabilities.

On February 28, Spicejet had mutually settled their Rs 250 crore dispute through amicable negotiations with Celestial Aviation, a subsidiary of AerCap, one of the largest aircraft lessor groups.

More details awaited.