NEW DELHI: Under severe financial pressure due to rising jet fuel prices, low-cost carrier SpiceJet got a fresh lease of life with WL Ross & Co, a private equity firm led by billionaire Wilbur Ross, announcing to invest Rs 345 crore as fresh equity.The board of SpiceJet, which has about 10 per cent market share, has accepted an offer from the foreign private equity firm to invest Rs 345 crore, a joint statement by the airline and WL Ross & Co said.

This comes close on heels of SpiceJet Executive Chairman and CEO Siddhant Sharma resigning from his position amid reports of stake sale in the airline.Ross is believed to have picked up 13-14 per cent stake in SpiceJet while all other major investors in the airline like Istithmar, Ajay Singh and Kansagras would stay invested. "We are delighted to have WL Ross as an investor in SpiceJet. With this investment, we have no doubt that SpiceJet will fulfill its promise of emerging as India's leading airline," Bhulo Kansagra and Ajay Singh, Board members of SpiceJet, said in the statement.

Wilbur L Ross Jr, Chairman and CEO, WL Ross & Co, said: "We believe in the long-term viability of the low-cost airline model in India and the fuel prices eventually will stabilize.Ross and Ranjeet Nabha, the MD and CEO of WL Ross India, will join the board of directors of SpiceJet.According to current regulations, the foreign holding in a domestic airline cannot exceed 49 per cent.Vijay Mallya was also in talks with SpiceJet for a strategic stake but the negotiations fell through on the question of valuation. The low-cost carrier, reeling under pressure of high jet fuel prices, recently announced to raise 100 million dollars to partly fund its fleet expansion plans.

The high aviation turbine fuel price forced the budget carrier to cut down its flights to 94 from 117 earlier. This is the second investment of WL Ross in India. In February 2007, Ross acquired OCM India Ltd, a worsted suiting maker, for around USD 37 million. NM Rothschild & Sons India Pvt Ltd acted as the exclusive financial adviser to SpiceJet Ltd.