Budget carrier SpiceJet on Monday announced that its founder and promoter, Ajay Singh, through Spice Healthcare, a promoter group entity, will infuse `294.09 crore into the airline.
This would be done through the conversion of 131.4 million warrants into an equal number of equity shares. This strategic move will increase the consolidated shareholding of the promoter group in the airline to 33.47% from the current 29.11%.
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Chairman and managing director Ajay Singh is disposing up to 31.5 million equity shares of SpiceJet to utilise the proceeds to enable Spice Healthcare to partially fund the balance of 75% of the amount at the time of allotment of the equity shares pursuant to exercise of option to convert the said warrants.
Spice Healthcare has infused `98.03 crore, being 25% of the issue price, towards subscription of the warrants. In FY24, it had invested `101.97 crore in SpiceJet, acquiring 4.99% of the equity shares. A total of `200 crore was infused by Spice Healthcare during FY24 to support the airline’s financial needs.
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A meeting of the board/board committee of SpiceJet will be held on or before March 18 (Tuesday) to approve the allotment of equity shares pursuant to the exercise of the warrant conversion option, the airline added.
Singh said, “This investment will further strengthen our financial position and drive growth. We are well positioned to enhance our operations and seize new opportunities.”
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