Dubai-based Istithmar has sold over six per cent stake in SpiceJet, India’s second-largest low-cost carrier (LCC). The investment arm of Dubai World sold its shares to investors after having converted its foreign currency convertible bonds (FCCBs) to an equity stake, according to banking sources.

The company held about $12 million worth of FCCBs in SpiceJet. Bank of America-Merill Lynch brokered the block deal for the company, said sources.

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The investment house had in February sold much of its 13.39 per cent holding (31.5 million shares out of the 32.3 million it held), worth Rs 169 crore in SpiceJet to a domestic mutual fund and a foreign institutional investor.

After media baron Kalanithi Maran acquired a controlling stake of 37 per cent in the carrier by buying stakes of WL Ross and its earlier promoter, it made an open offer to buy 20 per cent more at Rs 57.76 per equity share.

Following Maran’s entry aboard SpiceJet, two of the top management executives have quit, including CEO Sanjay Agarwal, to make way for members representing Maran. The new promoter may also look at shifting its office and changing the name of the carrier.

Since its inception, SpiceJet, for the first time, reported a profit of Rs 61.4 crore for the year-ended March. Revenues grew by 29 per cent to Rs 2,181 crore.

In line with the robust growth in domestic demand for the sector since December (an average four million passengers a month), the company has been consistently recording load factors in excess of 80 per cent.

SpiceJet operates 129 daily flights between 18 destinations and has been granted permission to operate international flights to Nepal, Sri Lanka and Maldives.

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