SpiceJet announced on Monday that its Founder and Promoter, Ajay Singh, through his Promoter Group Company, Spice Healthcare Private Limited, will invest an additional Rs 294.09 crore into the airline that will raise the group's shareholding in the private airline.
This investment will come through the conversion of 13,14,08,514 warrants into an equivalent number of equity shares (13.14 crore equity shares). As a result, the consolidated shareholding of the Promoter Group in SpiceJet will increase from 29.11% to 33.47%.
SpiceJet's shares soared following the news and was trading 6.4% higher at Rs 48.40 apiece on BSE wich was up 0.6% in early trade on Monday.
“This fresh infusion reaffirms our unwavering commitment to the airline and its bright future. This investment will further strengthen our financial position and drive growth. SpiceJet has always been a resilient airline and with this fresh capital, we are well positioned to enhance our operations and seize new opportunities," said Singh.
The proceeds from the sale of shares will be used to partially fund the remaining 75% of the amount required for the allotment of equity shares after the warrants are converted, said the airline.
Meanwhile, a meeting of the Board or Board Committee of SpiceJet is scheduled to take place on or before March 18, 2025, to approve the allotment of equity shares resulting from the warrant conversion.
This move, part of a larger financial restructuring, highlights the Promoter Group's ongoing commitment to SpiceJet's long-term growth and stability. By converting the warrants into equity, Singh aims to enhance the airline’s financial position and demonstrate confidence in its future prospects.
This investment will come through the conversion of 13,14,08,514 warrants into an equivalent number of equity shares (13.14 crore equity shares). As a result, the consolidated shareholding of the Promoter Group in SpiceJet will increase from 29.11% to 33.47%.
SpiceJet's shares soared following the news and was trading 6.4% higher at Rs 48.40 apiece on BSE wich was up 0.6% in early trade on Monday.
“This fresh infusion reaffirms our unwavering commitment to the airline and its bright future. This investment will further strengthen our financial position and drive growth. SpiceJet has always been a resilient airline and with this fresh capital, we are well positioned to enhance our operations and seize new opportunities," said Singh.
The proceeds from the sale of shares will be used to partially fund the remaining 75% of the amount required for the allotment of equity shares after the warrants are converted, said the airline.
Meanwhile, a meeting of the Board or Board Committee of SpiceJet is scheduled to take place on or before March 18, 2025, to approve the allotment of equity shares resulting from the warrant conversion.
This move, part of a larger financial restructuring, highlights the Promoter Group's ongoing commitment to SpiceJet's long-term growth and stability. By converting the warrants into equity, Singh aims to enhance the airline’s financial position and demonstrate confidence in its future prospects.
