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ASI Industries Limited Acquires 0.0624% Stake in SpiceJet for Investment Purposes
Team Finance Saathi
16/Jan/2025
What's covered under the Article:
- ASI Industries acquires 0.0624% of SpiceJet shares, amounting to ₹3.92 Crores.
- The acquisition is intended for investment purposes, with no intention to control SpiceJet.
- SpiceJet is a leading low-cost airline with a 19-year track record and international presence.
In a recent update, ASI Industries Limited announced the acquisition of 800,000 equity shares of SpiceJet Limited, representing 0.0624% of the company’s shareholding. The total cost of the acquisition stands at ₹3.92 Crores. The move is a part of ASI Industries’ broader strategy to diversify its portfolio through investments in various sectors, with this specific acquisition aimed at capturing long-term or short-term benefits from SpiceJet’s performance.
SpiceJet is one of India’s top low-cost airlines, renowned for connecting remote areas of the country and continually expanding its fleet and service offerings. Established in 2005, SpiceJet has expanded its reach both domestically and internationally, making it a preferred carrier for many. For ASI Industries, this acquisition does not signal any intention to gain control over SpiceJet, and the company clarified that it was merely an investment decision, aligning with its broader financial strategy.
This acquisition has been completed through the stock exchange, and ASI Industries has confirmed that no regulatory approvals are required for this purchase. With no involvement of related party transactions, and the transaction being conducted at arm's length, the company's management maintains a neutral stance towards any future influence on SpiceJet's operations.
The total cost of the acquisition was ₹3.92 Crores, and this purchase is structured as a cash transaction. The target company, SpiceJet, has reported a turnover of ₹7,049.97 Crores in the financial year 2023-24, with a history of fluctuating performance. Despite posting a negative PAT and net worth for FY 2023-24, the company’s established presence and expanding fleet make it a viable option for investment.