SpiceJet on Monday (March 17) announced that its founder, Ajay Singh, will inject Rs 294 crore into the airline through a promoter group entity by converting warrants into equity shares. This move will increase the promoter group’s stake in the airline from 29.11 per cent to 33.47 per cent.
Singh, who also serves as the Chairman and Managing Director of SpiceJet, will channel the investment through Spice Healthcare Pvt Ltd, a promoter group company. As per the airline’s statement, Singh will convert 13.14 crore warrants into an equal number of equity shares, infusing Rs 294.09 crore into the company.
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“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.
Additionally, Singh plans to sell up to 3.15 crore equity shares of SpiceJet, with the proceeds helping Spice Healthcare Pvt Ltd partially fund the remaining 75 per cent of the amount due at the time of equity share allotment following the warrant conversion.
Board yet to approve equity share allotment
This capital infusion is part of SpiceJet’s previously announced fundraising plan. The company’s board or a designated committee is set to meet on or before March 18 to approve the equity share allotment under this conversion plan.
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Singh emphasised that this investment will bolster the airline’s financial stability and support its growth. He also noted that the conversion of warrants and capital infusion mark a crucial milestone in the airline’s turnaround strategy amid recent challenges.
SpiceJet shares surge
Following the announcement, SpiceJet shares surged over 4 per cent to Rs 47.30 apiece in morning trade on the BSE.
Last Thursday, Singh sold nearly a 1 per cent stake in SpiceJet for Rs 52 crore through an open market transaction. Meanwhile, in its latest financial report, SpiceJet posted a net profit of Rs 26 crore for the quarter ending December 2024, reflecting an overall improved performance.
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