SpiceJet plans to raise $100 mn for fleet expansion by year-end

Sharma's comments come just a day after the UK-based promoter-director of SpiceJet said he was willing to divest his 12.91 per cent stake in the airline if he got the right valuation.

The airline, however, is yet to decide on the mode of funding. "We have the option of taking the sale and lease back route (only lease margins will have to paid by the airline which are minimal) or we could raise money in the debt-equity ratio of 80:20. We could look for simple equity infusion as well," said Sharma.

The airline will appoint a merchant banker to structure the deal soon. Sharma, however, was noncommittal on on whether the funds would come through private equity investors or as a loan or through dilution of equity by current stake holders.

"There is no point talking about it at present as we would require funding only after October," he said.

The airline, however, has been looking for funding for quite some time but the deals have not materialised. PE players, such as Texas Pacific Group, had submitted a term sheet but did not carry the proposal through.

In the current scenario, almost all airlines are looking for funding to the tune of $75 million to $100 million but there has not been enough investor interest, according to investment bankers.

The airline has already declined funding from the US EximBank, which funds Boeing aircraft deals and has major financial commitment towards Air-India and Jet Airways.

SpiceJet is required to make advance payment for the for 10-aircraft order, deliveries for which will begin in 2011 and continue through 2013. It currently has a fleet size of 19 aircraft.

Sharma also denied any meeting with full-schedule carrier Jet Airways in the recent past. On a possibility of an acquisition by another airline, Sharma said: "I do not think anybody in the industry has enough money today to think about it." It remains to be seen whether the valuation is on the higher.