Ajay Singh, founder and head of domestic and budget airline SpiceJet, will add Rs 294 crore to the airline through promoter group unit. SpiceJet gave this information on Monday. After this investment made by Ajay Singh, the shareholdings of the promoter group will increase to more than 33 percent. According to PTI news, Ajay Singh, who is also the chairman and managing director of the airline, will put this money through Promoter Group’s company Spice Healthcare Private Limited.
Promoter Group’s shareholdings will be 33.47 percent
According to the news, SpiceJet said that the Singh will put 13,14,08,514 warrants in the airline to equal number of equity shares (13. 14 crore equity share) and put Rs 294. 09 crore in the company. With this strategic move, the shareholdings of the promoter group in SpiceJet will increase from the current 29 percent to 33. 47 percent. In addition, Singh is selling 3.15 crore equity shares of the airline.
Income will be used to enable Spice Healthcare Private Limited to partially fund 75 percent of the remaining amount at the time of allocation of equity shares according to the use of the option to change the said warrant. This investment made by Singh is related to the plan to raise money declared earlier.
The meeting will be held on or before 18 March
The meeting of the SpiceJet Board/Board Committee will be called on or before 18 March to approve the allocation of equity shares according to the use of warrant conversion options. Singh said that investment will further strengthen the airline’s financial position and promote development. In the background of challenges faced by SpiceJet, he also said that successful conversion of warrant and then capital investment is another important step in the airline’s ongoing change strategy.
On Thursday, Ajay Singh sold about 1 percent stake in the budget airline for Rs 52 crore through transactions in the open market. In February, SpiceJet earned a tax of Rs 26 crore for three months after ending December 2024. SpiceJet’s shares rose over 4 per cent to Rs 47.30 per share in morning trading on BSE.
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