On Monday, SpiceJet Ltd announced that, as of April 1, it has divided its SpiceXpress cargo and logistics operations into a distinct company called SpiceXpress and Logistics Pvt Ltd. SpiceJet reports a one-time gain of Rs 2,555.77 crore as a result of the transaction, significantly reducing its negative net worth.
SpiceJet has completed the separation of its SpiceXpress cargo and logistics operations into a distinct company, SpiceXpress, and Logistics Private Limited, in an effort to accelerate the growth of its cargo business and offer a more streamlined and effective service to its clients.
According to SpiceJet, it also makes it possible for SpiceXpress to collect money on its own.
According to SpiceJet Ltd. Chairman Ajay Singh, the move to separate SpiceXpress is consistent with the company’s long-term business plan and will significantly increase the value of the logistic operation.
“The separation of our cargo and logistics branches is a stepping stone in our growth story, which shall unfold in the times to come,” added Singh.
SpiceXpress recorded a net profit of 51.4 crore rupees for the months of April through December in FY23.
SpiceJet Ltd. completed the spinoff of its cargo and logistics segment “SpiceXpress” into a separate firm, SpiceXpress, and Logistics Private Limited, the company stated, in an effort to accelerate the expansion of its cargo business and offer a more streamlined and efficient service to its clients.
SpiceXpress announced that it would relieve SpiceJet of its obligation to pay the consideration for the slump sale by issuing securities to SpiceJet for a total of Rs 2,555.77 crore that included both equity shares and compulsorily convertible debentures. This move would also help SpiceJet’s balance sheet.
Singh asserts that SpiceXpress will give the freight and logistics industry a more distinct focus and enable the prospect of acquiring financing for the company’s expansion.
He went on to say that SpiceXpress and SpiceJet both have enormous potential and would work well together.
Additionally, he claimed that SpiceJet’s negative net worth will be greatly reduced as a result of the spinoff, which will also allow SpiceXpress to generate money on its own.
Additionally, he claimed that SpiceJet’s negative net worth will be greatly reduced as a result of the spinoff, which will also allow SpiceXpress to generate money on its own. The split would further strengthen and deliver our balance sheet, according to Mr. Singh, who noted that over $100 million in past-due payments to Carlyle Aviation Partners were restructured last month.
