Mumbai-based business couple invest Rs 1,100 cr in Spicejet for 19% stake

Mumbai-based businessman Harihara Mahapatra and his wife Preeti have announced a substantial investment of Rs 1,100 crore in cash-strapped SpiceJet. In an exchange filing on Tuesday, the airline said Harihara Mahapatra and Preeti Mahapatra, who are promoters of the Mumbai-based group Mahapatra Universal Limited, will jointly hold 21.98 per cent (1.99 per cent and 19.99 per cent, respectively,) stake in the airline. 

The couple have emerged as the biggest investors in the new fundraising by the cash-strapped airline, which has thrown its hat into the ring to acquire the Wadia-group-promoted GoFirst. Preeti Mahapatra will be issued 20 crore shares of the airline for an investment of Rs 1,000 crore and will hold a 17.66 percent stake in the airline following the allotment of both shares and warrants by SpiceJet. Her husband, Hariahara Mahapatra, will be issued 2 crore shares of the airline for an investment of Rs 100 crore for a 1.77 percent stake in the airline.

Aries Opportunities Fund will hold a 3.53 percent stake in the airline, while Elara Capital will hold an 8.83 percent, after the conversion of warrants and shares, according to the detailed funding proposal by SpiceJet.Promoter Ajay Singh’s current shareholding in the airline will fall from 56.49 percent to 38.55 percent once the shareholders approve the issuance of equity and warrants; 37.9 percent of Singh’s stake is pledged to various banks.

Harihara Mahapatra is the co-founder of Mahapatra Universal Limited, a company incorporated on June 23, 2011. Harihara Mahapatra once announced an ambitious plan to construct the country’s tallest building in Khajod, Gujarat. That plan, however, failed to take off. Preeti Mahapatra holds a master’s degree in International Business (Finance) and Export Management, according to the group's website.Preeti Mahapatra has successfully launched international brands in European, Asian, and Middle Eastern markets, the website added.In 2016, she contested the election for the Rajya Sabha from Uttar Pradesh on a BJP ticket. However, she lost as per reports.