SpiceJet gets shareholders approval to transfer cargo business to its subsidiary
No-frills carrier SpiceJet Limited on Tuesday said it has received shareholders’ approval to transfer its cargo and logistics services business to its subsidiary, SpiceXpress and Logistics Pvt Ltd (SpiceXpress). This will result in a one-time gain of Rs 2,555.77 crore for the airline company.
In a statement, the airline said that the transfer of the logistics business will wipe out a substantial portion of the company’s negative net worth. SpiceJet had a negative net worth of Rs 3,300 crore as of June 30, 2021, which will reduce to about Rs 745 crore post the transfer of the logistics business.
Post the transfer of the logistics business the new company will be able to raise capital independently of SpiceJet to fund its future growth. It has also received shareholder approval to raise funds through a QIP, thus ensuring its long-term growth plans remain intact.
At the close of the market on Wednesday, the share price of Spice Jet Limited was trading 1.82 per cent lower at Rs 78.25 on BSE.
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