New Delhi: Low cost carrier Spicejet Tuesday announced that it has received investment proposals worth $118 million, including offers from the Tata group and Goldmen Sachs, to fund their expansion plans.

The board has approved the proposals and recommended that they be placed for shareholder approval at a meeting to be held Jan 11, 2007.

"The company intends to issue equity on a preferential basis for about $80 million against the financial investment offered," SpiceJet director Ajay Singh said here Tuesday.

"This is a financial investment and not a strategic one. With the issue of preferential equity to new investors, the promoters' holding in the company would come down to about 35 percent. Currently, it is about 43 percent," he added.

The investment proposals approved by the SpiceJet board include among others $1.2 million by Tata Investments Corporation Limited, $16 million by Ewart Investments Limited (an investment company of the Tata group), $30 million by Texas Pacific Group, $25 million by Istithmar PJSC and $5 million by Goldman Sachs. 

"These investors will add tremendous value to SpiceJet. The Tata group is India's finest group, Texas Pacific is one of the best known investment funds in the world while Istithmar and Goldman Sachs have been associated with SpiceJet earlier also," added another director, Bhulo Kansagara.