Cash-strapped SpiceJet may finally have found an investor to bail it out. Senior Government officials said on Wednesday that the airline is submitting an investment plan to market regulator SEBI.

As on December 5, the airline, controlled by billionaire Kalanithi Maran’s Sun Group, owed ₹1,600 crore to various creditors. SpiceJet’s former promoter, Ajay Singh, is believed to have tied up with JP Morgan to pump in up to $200 million.

While the contours of the investment plan were not immediately available, sources said that SEBI’s nod is required as the foreign investment holding is likely to exceed 25 per cent, triggering an open offer. However, SpiceJet’s foreign investor does not want to go in for an open offer and plans to seek a one-time exemption from SEBI.

Exemption possible

SEBI has the power to exempt investors from making an open offer on a case-to-case basis and there is also a provision for automatic approval.

This is possible if a competent authority or a court issues an order. In the case of SpiceJet, the Civil Aviation Ministry can issue an order under Aircraft Rule 1937 exempting investors from making an open offer in the larger public interest.

Sources indicated that SpiceJet will have to approach the competent authority for an exemption as SEBI is unlikely to consider the airline’s request. In such a situation, the investors will have to approach the Ministry of Civil Aviation for automatic approval, the sources added.

The Government has been keen to ensure that SpiceJet does not cease operations as this will cause hardships both to passengers and the airline’s employees.

The only time an exemption has been granted has been in the case of a bank, sources said.

On Wednesday, the SpiceJet stock closed at ₹18.10 on the BSE, down 0.28 per cent from its previous close.

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