JPMorgan fund in talks on taking $200m stake in India's SpiceJet

A fund managed by JPMorgan Chase is in advanced talks to partner with Indian carrier SpiceJet Ltd's co-founder for a planned $200 million investment into the cash-strapped airline, the Economic Times reported on Thursday, citing unnamed sources with knowledge of the discussions.

Ajay Singh, who helped set up the low-cost airline in 2005, is leading a rescue plan for SpiceJet and has met with aviation ministry officials to discuss a revival plan.

He is looking to partner some US-based private equity investors to help fund the airline, a government official told reporters on Monday.

Singh and a Mumbai-based managing director of JPMorgan's Asian Infrastructure fund met with senior officials of the aviation ministry on Tuesday, the newspaper said, citing an unnamed government source.

According to the source, Singh and JPMorgan are in touch with representatives of SpiceJet's majority owner, billionaire Kalanithi Maran's Sun Group, which it said was keen to exit the airline completely.