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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.