SpiceJet founder Ajay Singh to infuse Rs 294 Cr in airline through promoter group entity
SpiceJet said Singh will infuse Rs 294.09 crore into the company through the conversion of 13.14 crore warrants into an equivalent number of equity shares.
SpiceJet has said that its founder Ajay Singh will infuse Rs 294 crore into the airline through a promoter group entity by way of conversion of warrants into equity shares, following which promoter group's shareholding will increase to over 33 per cent.
Singh, who is also the chairman and managing director of the carrier, will be infusing the funds through Spice Healthcare Pvt Ltd, a promoter group company.
In a release on Monday, SpiceJet said Singh will infuse Rs 294.09 crore into the company through the conversion of 13,14,08,514 warrants into an equivalent number of equity shares (13.14 crore equity shares).
"This strategic move will increase the consolidated shareholding of the promoter group in SpiceJet from the current 29.11 per cent to 33.47 per cent," the release said.
Besides, Singh is selling up to 3.15 crore equity shares of the airline, and the proceeds will be utilised to enable Spice Healthcare Pvt Ltd to partially fund the balance of 75 per cent of the amount at the time of allotment of the equity shares pursuant to exercise of option to convert the said warrants.
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The fund infusion by Singh is related to a fundraise plan announced earlier.
A meeting of the SpiceJet board/ board committee will be held on or before March 18, to approve the allotment of equity shares pursuant to the exercise of the warrant conversion option, the release said.
Singh said the investment will further strengthen the airline's financial position and drive growth.
Against the backdrop of headwinds that were faced by SpiceJet, he also said the successful conversion of warrants and subsequent capital infusion marks another significant step in the airline's ongoing turnaround strategy.
On Thursday, Singh divested nearly 1 per cent stake in the budget airline for Rs 52 crore through an open market transaction.
Last month, SpiceJet reported a profit after tax of Rs 26 crore for the three months ended December 2024, helped by overall improved performance.
Shares of SpiceJet rose over 4 per cent to Rs 47.30 apiece in the morning trade on the BSE.
Edited by Swetha Kannan