SpiceJet to transfer logistics biz to subsidiary SpiceXpress at Rs.2,556-Cr valuation

Gurugram-based, publicly listed airline SpiceJet is set to transfer its cargo and logistics services on a slump sale basis, along with all related assets and liabilities, to its subsidiary SpiceXpress and Logistics Pvt Ltd. It has sought shareholder approval to complete the process and to raise up to INR 2,500 crore via a QIP issue. The logistics business has been valued at INR 2,555.77 crore. This will be discharged by SpiceXpress by issuance of shares to SpiceJet. SpiceXpress will operate as a separate entity upon transfer of business on or around October 1, 2021. But SpiceJet will continue to provide certain transportation services, ground and logistics support, management services, sharing and provisioning of resources etc to SpiceXpress.