India is a developing nation and many businesses here gets slapped by inflation & recession every now & then. A similar story comes from the famous airlines SpiceJet. It is a word around the corner that the famous airline company was acquired by the current owner, Mr Ajay Signh for Rs. 2 only. Yep! You read it right. No Zeros. Only a single digit. It is recorded to be the cheapest business deal in the history of India economy. But is it actually what it looks like.

Let’s understand.

When Ajay Singh acquired the airline business from Kalanithi Maran’s company “Kal Airways Pvt. Ltd.”, it was in a debt of worth 14 billion rupees followed by other liabilities of around Rs. 2000 crore. They were in not even in a condition to pay off their $ 2.2 million fuel bills. (Included above)

As per Delhi High Court, a Business Purchase Agreement was done between the both in 2015 where Ajay Singh got over 35 crore shares of the airlines which represented 58.5% shareholding of the whole business and only to be paid Rs. 2 for that matter.

As the reports suggest, no information was disclosed by the transacting parties at the time of the deal. Neither did market regulator (SEBI) Securities Exchange Board of India compelled them for disclosure. Thus it became the first-ever acquisition of a listed company with no price disclosure and at a 100 per cent discount to its share price.

When Ajay Singh came to the rescue of the airline, the business was indebted in 34 billion rupees, had made a loss of 6 billion rupees which resulted in a negative net worth of Rs. 13 Billion Rupees. When Singh took over the business, he not only paid those 2 rupees but also acquired the businesses all assets and liabilities. Thus, it is not apt to say it the cheapest deal because paying of billion rupee loans is not that easy. Our national airline, Air India is already on a debt of more than 50,000 Crore rupees. Well, it seems Indian Soil is not that fertile to grow an Airline Business here.

However, Ajay Singh has handled the business well since then and has been able to save the airlines from a fate like that of Kingfisher. His strategies and business agenda has brought a great chunk of rice in share pricing of SpiceJet. It has gone up by 124% in 2018 than the previous year’s index and has gained a total high of 800% since 2014. It has travelled a journey of Rs. 17 per share in 2014 to Rs. 140 per share as of today.

Well, that is definitely the result of a healthy business mind, Mr Ajay Singh.