In a bid to boost the growth of its cargo business and provide a more streamlined and efficient service to its customers, SpiceJet has completed the hive off of its cargo and logistics division ‘SpiceXpress’ into a separate entity, SpiceXpress and Logistics.
The hive off is effective April 1, 2023 and paves the way for SpiceXpress to raise funds independently. The hive off would strengthen SpiceJet’s balance sheet, wipe out a substantial portion of the company’s negative net worth and unlock significant value for the company and its shareholders.
The consideration for the slump sale shall be discharged by SpiceXpress by issuance of securities in the combination of equity shares and compulsorily convertible debentures to SpiceJet for an aggregate amount of Rs 2,555.77 crore which will also strengthen the balance sheet of SpiceJet.
SpiceJet is among the first private companies that stepped into the Indian aviation sector.