SpiceJet chief Ajay Singh will invest ₹294 crore in the airline, group’s shareholding will increase
Ajay Singh, founder and chairman of domestic and budget airline SpiceJet, will invest Rs 294 crore in the airline through a promoter group unit, SpiceJet said on Monday. With this investment by Ajay Singh, the shareholding of the promoter group will increase to more than 33 percent. According to PTI, Ajay Singh, who is also the chairman and managing director of the airline, will invest this money through Spice Healthcare Private Limited, a promoter group company.
Promoter group’s shareholding will increase to 33.47 percent
According to the news, SpiceJet said that Singh will infuse Rs 294.09 crore in the company by converting 13,14,08,514 warrants into an equivalent number of equity shares (13.14 crore equity shares) in the airline. This strategic move will increase the shareholding of the promoter group in SpiceJet from the current 29.11 percent to 33.47 percent. In addition, Singh is selling 3.15 crore equity shares of the airline.
The proceeds will be used to enable Spice Healthcare Private Limited to partially finance 75 percent of the balance amount at the time of allotment of equity shares pursuant to the exercise of the option to convert the said warrants. This investment made by Singh is related to the fundraising plan announced earlier.
Meeting to be held on or before March 18
A meeting of the SpiceJet Board/Board Committee will be convened on or before March 18 to approve the allotment of equity shares pursuant to the exercise of the warrant conversion option. Singh said the investment will further strengthen the airline’s financial position and boost growth. In the backdrop of the challenges faced by SpiceJet, he also said the successful conversion of warrants and subsequent capital infusion is another important step in the airline’s ongoing turnaround strategy.
Last Thursday, Ajay Singh sold about 1 per cent stake in the budget airline for Rs 52 crore through an open market transaction. In February, SpiceJet posted a profit after tax of Rs 26 crore for the three months ended December 2024. SpiceJet shares rose over 4 per cent to Rs 47.30 per share in morning trade on the BSE.
