UK NRI Kansagra is looking to exit the SpiceJet-airline if he gets the right valuation.

 

London, May 16, 2008
Surinder Singh

London-based NRI, Bhupendra (Bhulo) Kansagra, along with his brother Suresh Kansagra holds 12.91 per cent in the Delhi-based low-cost carrier SpiceJet, wanted to exit the airline business because of rising fuel prices. There is rumor about the merger of low-cost carriers like SpiceJet, GoAir and IndiGo with bigger airlines

Kansagra said:

• Everybody is bleeding in the industry because of the cost of jet fuel is exorbitant.
• In 2005, the sagging airline was given a boost when he pumped in more money.
• He bought the shares in SpiceJet from SK Modi at Rs 10 per share after a round of legal battles in 2000.
  • On January 8, the share had seen a 52-week high of Rs 104.80
  • On March 26, a 52-week low of Rs 37.30

Speaking to Business Standard from London, Kansagra said, "I am aware of media reports in India that SpiceJet is being wooed by several private domestic airlines but no one has come to me with a concrete offer."

Siddhanta Sharma, SpiceJet executive chairman said it was technically not possible for Istithmarto buy the Kansagras’ stake without making an open offer.

Bhupendra Kansagra is on the board of several Indian companies like AGM Chemicals, Royal Holdings (SpiceJet) and Bishopwood Estates as directors. He has made an investments in oil fields in Kenya.

He is also associated with international groups including agriculture, horticulture, mineral processing industries, hospitality and property businesses and have a presence in UK, Kenya, Tanzania, Mozambique, Sudan, Nigeria and India.

Through Malwood Group, he developed his businesses in UK, Nigeria, Kenya and Tanzania. He set up storage and distribution of fuel with more than 7,000 gas outlets in Lagos. He collaborated with Chevron, Texaco in deep offshore exploration blocks in Nigeria.