SpiceJet to transfer logistics business to subsidiary SpiceXpress

SpiceJet shared that it has received the approval of stakeholders to transfer its cargo and logistics services business to a subsidiary. The transfer will be on a slump sale basis, through an all-share deal worth over INR 2,555 crore, a move is aimed at helping the airline to significantly reduce its negative net worth.
In a release, the budget carrier said it has received shareholders’ approval to transfer the cargo and logistics services business to its subsidiary, SpiceXpress and Logistics Private Ltd.
According to the airline, the transfer will provide greater and differentiated focus to cargo and logistics business as well as allow raising capital for the business to accelerate its growth.
Also, the shareholders have cleared the proposal to raise up to INR 2,500 crore through the Qualified institutional placement (QIP) route. These developments also come at a time when the airline industry is slowly recovering after being battered by the coronavirus pandemic.