India’s LCC SpiceJet has disclosed economic pact with US-based private equity company WL Ross & Co LLC wherein the latter will invest $100 million in earlier company. The impact of the news was visible in share market where shares of SpiceJet reacted sharply to this news and soared as much as 9.59 per cent, whereas they closed at an intra-day high of Rs 31.40.

 

Earlier, shareholders of SpiceJet including Royal Holding Services Ltd, Istithmar and Ajay Singh and Goldman Sachs, in capacity as a bondholder of the company concluded a final agreement with WL Ross & Co. The agreement will be effective soon and report of the same has been filed in to the Bombay Stock Exchange. Evidently, this is the WL Ross' second investment in India.  

 

Bhulo Kansagra, SpiceJet Board member commented that WL Ross is one of the largest and the most experienced investor in the world, and with this investment, SpiceJet does not have any doubt that it will be able to fulfill its promise of emerging as India's leading airline. However, for WL Ross it is second investment venture, earlier they acquired apparel maker OCM India worth $37 million.