SpiceJet gets shareholders’ nod to transfer logistics business on slump sale basis to subsidiary

According to the airline, the transfer will provide greater focus to cargo and logistics business, and allow raising capital for the business to accelerate its growth.

SpiceJet on Tuesday said shareholders have approved the transfer of its cargo and logistics services business to a subsidiary, on a slump sale basis, through an all-share deal worth over ₹2,555 crore, a move that will help the airline to significantly reduce its negative networth.

Besides, the shareholders have cleared the proposal to raise up to ₹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 COVID-19 pandemic.