Is Spice Jet planning to hive off its cargo operations?

SpiceJet has already announced plans to hive off its cargo and logistics operations into a separate business entity, distinct from its core airline operations. It now plans to obtain shareholder approval for the same. As part of the deal, the entire cargo and logistics business will be transferred via slump sale with all the assets and liabilities.

SpiceJet confirmed that its logistics business was valued at an enterprise valuation of approximately Rs.2,556 crore. In lieu of the valuation forfeited, SpiceXpress will issue shares to SpiceJet and the entire deal is expected to be completed by Oct-21. SpiceJet had reported a net loss of Rs.731 crore in the first quarter ended Jun-21 on COVID pressures.