Tatas to pick up under 10% stake in SpiceJet

The Tata group is making an indirect entry into the domestic airline business as a financial investor, by picking up under 10% in the Delhi-based low-cost airline SpiceJet.

The investment, to be made through the group’s financial arm Ewart Investments, is said to be worth about Rs 100 crore. The SpiceJet board is meeting in Delhi on Monday to consider the allotment of preference shares to Ewart.

A Tata spokesperson told ET that the deal was not a strategic investment, but a purely financial one. The Tatas are like a private equity player picking up stake in a company and the stake does not entitle them to a board seat in the company, he said. SpiceJet officials chose not to comment on the developments. The transaction is likely to be made at a price close to Rs 51 per share, sources close to the deal said.

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