Low cost carrier Spicejet has announced that its shareholders Royal Holding Services Limited, Istithmar and Ajay Singh and Goldman Sachs, in its capacity as a bondholder of the company have entered into definitive agreements with WL Ross & Co. LLC.

Under the arrangement, US-based private equity company and leveraged buyout specialist, WL Ross & Co LLC will invest $100 million (over Rs 420 crore) in the company for business requirements.

Furthermore, Goldman Sachs has also agreed to subscribe to equity warrants of the company under the preferential issue guidelines of SEBI, which is subject to receipt of requisite approvals.

After the announcement, the stock price of the spicejet climbed to Rs 30.25 on BSE. The stock gained 6% over its previous close of Rs 28.65.