Mumbai, Aug. 11: SpiceJet Ltd, the country’s second largest budget airline, today formally entered into a deal with the US-based private equity company—WL Ross & Co LLC.

WL Ross will invest $100 million (over Rs 420 crore) for its business requirements.

SpiceJet is also making a preferential offer to Goldman Sachs. The foreign investor will subscribe to equity warrants of the company. SpiceJet today informed the stock exchanges that its shareholders RHSL, Istithmar and Ajay Singh and Goldman Sachs, in their capacity as bondholders of the company, have entered into definitive agreements with WL Ross. It said that this would result in an infusion of around $100 million to help the company meet its business requirements.

WL Ross is thus increasing its investment in the budget airline. It may be recalled that when SpiceJet first announced the deal on July 15, it had said that the private equity company would bring in $80 million (Rs 345 crore).

This will be WL Ross’ second investment in India. Last year, it had acquired the worsted suiting maker OCM India for close to $37 million. The announcement led to SpiceJet shares soaring on the stock exchanges today. On the BSE, it ended nearly 5.6 per cent higher at Rs 30.25. For SpiceJet, the deal comes at a time when it is passing through a crisis emanating from higher fuel costs. Wilbur L. Ross Jr, chairman of the eponymous private equity firm, and Ranjeet Nabha, managing director & CEO of WL Ross India, are expected to join the board of SpiceJet.