Ajay Singh paid Maran Rs 2 to acquire SpiceJet in 2015

Ajay Singh acquired SpiceJet from Kalanithi Maran for Rs 2 over two years back. According to a recent Delhi High Court judgment on a Singh-Maran dispute, a sale purchase agreement (SPA) was executed between the two in January 2015 where Singh acquired just over 35 crore shares -representing 58.5% stake in the low cost carrier (LCC) -from promoter Maran and his investment arm Kal Airways for this amount.

This is possibly the lowest amount at which a listed company has ever been taken over in India. According to the share price at the time of the SPA, Maran’s stake was worth Rs 765 crore. The scrip now trades at over Rs 120, making Singh’s holding worth Rs 4,400 crore.

However, SpiceJet was cash-strapped and on the verge of closure in December 2014 when BJP strongman Singh who coined the slogan “ab ki baar Modi sarkar” – and co-founder of this LCC – re-acquired it from Maran. The LCC had lost Rs 687 crore in 2014-15 and had a negative net worth of Rs 1,329 crore in the same year. The airline’s debt at the time of acquisition was over Rs 1,418 crore apart from other liabilities of over Rs 2,000 crore.

After taking over SpiceJet, Singh is credited with turning around the airline by posting profits and placing huge orders for aircraft with Boeing – something mentioned by US President Trump during PM Modi’s recent visit to Washington.

Asked to comment on the Rs-2 acquisition, a SpiceJet official said: “To say that Ajay Singh bought SpiceJet for Rs 2 is absolutely baseless and there could be nothing farther from the truth. On December 16, 2014, SpiceJet under the control of Maran family wrote to the government notifying cancellation of all flights and closure of the airline from 4pm on December 17, 2014.”