UK's SRAM & MRAM Group to invest $100 million in India's SpiceXpress

BENGALURU (Reuters) - India's SpiceJet Ltd said on Monday that UK-based SRAM & MRAM Group will invest $100 million in its cargo division SpiceXpress, sending shares of the budget airline up as much as 4.8%.

The investment comes days after SpiceJet brushed off speculation of filing for insolvency in the wake of rival Go First's bankruptcy.

SpiceJet had hived off SpiceXpress into a separate entity effective April 1, paving the way for the company to raise funds independently.

SRAM & MRAM Group signed the investment pact following a restructuring agreement with aircraft lessor Carlyle Aviation Partners, which acquired a stake in SpiceXpress in February.

The SRAM & MRAM conglomerate, headquartered in the United Kingdom, has interests in areas including agricultural and agro-food products, neural networks, and artificial intelligence.

"This investment should help SpiceXpress to further grow and expand and provide a more streamlined and efficient service to its customers," said Ajay Singh, Chairman and Managing Director, SpiceJet in a statement.

(Reporting by Chris Thomas in Bengaluru; Editing by Janane Venkatraman)