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Singh had acquired 58.46 percent stake in the loss making and debt laden budget airline, in January 2015, from Maran

Ajay Singh had paid Kalanithi Maran Rs 2 for SpiceJet

  Image: Amit Dave/ReutersA recent 25-page long judgement by the Delhi High Court states that Ajay  Singh, the present owner of SpiceJet, had bought majority stake in the  budget airline in January 2015 from Chennai-based billionaire and  chairman of Sun Group, Kalanithi Maran, for Rs 2. “After  discussions and with a view to restore operations and regain the  company’s market position, the petitioners (Kalanithi Maran and KAL  Airways Pvt. Ltd) had agreed to transfer their shares and the appellant  (Ajay Singh) agreed to acquire them. The Sale Purchase Agreement (SPA)  was executed between both the petitioners and the appellants on  29.01.2015.By the SPA, the appellant had acquired 35,04,28,753  equity shares in the company i.e. 58.46 percent share capital of both  petitioners, i.e. Kalanithi Maran and KAL Airways Pvt. Ltd. in SpiceJet  by paying Rs 2,” read a portion of the judgement, which has directed  Singh to pay Maran Rs 579 crore in relation to a share transfer dispute  between the two.The dispute relates to the SPA that was executed  in January 2015 between the two parties. Maran had filed a court case  against Singh and SpiceJet alleging that he and his airline company KAL  Airways were not issued stock warrants and convertible redeemable  preference shares as part of the SPA. Ajay Singh took over the  reins of SpiceJet at a time when the airline was on the brink of  collapse. He bought a loss making airline that had debt and liabilities  in excess of Rs 3,500 crore on its books. Besides, many of SpiceJet’s  aircraft lessors had started to take back their aircraft, which saw the  airline’s fleet shrink from 42 to 16 by December 2015. “Each  share of the company was around Rs 16.30 at the time of entering into  the SPA (the value of the said equity shares was about Rs 765 crores at  that time) subject to the terms that the payments also included the  adjustments of the advances monies provided to SpiceJet by the  Petitioner and KAL Airways Pvt Ltd ..….. This position was not disputed  by the appellant (Ajay Singh), before the learned single judge, as noted  in the impugned judgment,” the judgement went on to read.After  taking over the reins of SpiceJet, Singh had pumped in Rs 850 crore into  the airline, raising the money through a combination of low-cost debt  and supplier credits. Since then, SpiceJet has scripted a phenomenal turnaround story. The airline has reported profit  over last nine consecutive quarters. Its profit in fiscal 2017 stood at  Rs 430.7 crore. On Thursday, the airline's share price was trading at Rs  125.50 apiece, up a whopping 861 percent since Singh took over.

Ajay Singh had paid Kalanithi Maran Rs 2 for SpiceJet

Singh had acquired 58.46 percent stake in the loss making and debt laden budget airline, in January 2015, from Maran

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