The Kalanathi Maran-controlled SpiceJet is in advanced talks with AirAsia, the Malaysian low-cost carrier, for a stake sale, said top officials in the ministry of civil aviation.
If it happens, this would enable SpiceJet to get funds for acquiring new planes and expanding its network. And, it would give AirAsia an Indian footprint and expand its operations in the subcontinent.
However, AirAsia's group chief executive, Tony Fernandes, said: "AirAsia rejects the speculation surrounding our possible expansion in India. These reports are completely incorrect. AirAsia has not filed a bid for the Indian budget carrier and has no intention of doing so."
In an email, a SpiceJet spokesperson said: "A few foreign airlines/investors have evinced interest in SpiceJet. It will be very premature to comment on the possibilities of any fresh equity issuance to such interested parties."
The Marans hold 48.59 per cent stake in the airline.
Last week, the airline board approved a plan to issue convertible debentures of about Rs 200 crore (Rs 2 billion) to the promoters, increasing their stake to 53.59