Harihara Mahapatra, a Mumbai-based businessman, and his wife Preeti will invest Rs 1,100 crore in SpiceJet for a 19% stake in the company. According to a detailed funding proposal reviewed by ET, Aries Opportunities Fund will hold 3% and Elara Capital will hold 8% after warrant conversion.
Last week, the cash-strapped airline announced that it had received a lifeline in the form of a Rs 2,254 crore investment from a group of funds and high-net-worth individuals through the issuance of up to 130 million convertible warrants and 320.8 million new equity shares.
Once shareholders approve the issuance of equity and warrants, promoter Ajay Singh's current shareholding in the airline will fall from 56.49% to at least 38.55%. Singh has pledged 37.9% of his stake to various banks.
Hariahara Mahapatra and his wife are promoters of Mahapatra Universal Limited- a Mumbai based group. The website of the company says that they are present in multiple sectors like real estate, infrastructure, consulting, consumer and retail.
In 2016, Mahapatra’s wife Preeti was fielded as an independent candidate in the Rajya Sabha election with backing from the Bharatiya Janata Party against Congress leader Kapil Sibal.
The airline said it will use the aforementioned Rs 2,241.5 crore to pay statutory obligations such as Tax Deducted at Source (TDS), Goods and Services Tax (GST), Provident Fund (PF), etc.; settle past dues with creditors; unground its grounded planes and acquire new aircraft; pay for aviation turbine fuel; pay salaries to employees; and for general corporate purposes.
