May 21, 2024 07:24 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Sambit Patra triggers row calling Lord Jagannath 'Modi bhakt', later clarifies as 'slip of tongue' | AAP claims conspiracy after ED says it got illegal foreign funds | Amitabh and Jaya Bachchan walk out hand-in-hand after casting their votes in Lok Sabha polls | 57.5 pct voting recorded in Phase 5 of LS polls; top politicians including Smriti Irani, Rahul Gandhi in fray | CCTV footage shows Pune teen drinking at bar before Porsche accident that killed 2
SpiceJet shareholders approve plan to raise funds via shares and warrants
Photo courtesy: Wikimedia Commons

SpiceJet shareholders approve plan to raise funds via shares and warrants

| @indiablooms | 10 Jan 2024, 11:17 pm

Mumbai: Shareholders of SpiceJet have approved the company's proposal to raise funds through the issuance of equity shares and warrants, according to a regulatory filing following the annual general meeting (AGM) on January 10.

The shareholders voted in favour of both the "issue and allotment of equity shares on a preferential basis" and the "issue and allotment of warrants with an option to apply for and be allotted an equivalent number of equity shares on a preferential basis," stated the exchange filing.

While reports before the AGM suggested the airline aimed to secure approval from stakeholders to raise Rs 2,250 crore for expansion and revitalization, the filing did not specify the targeted fundraising amount.

In the previous month, the airline's board had already approved the proposal to raise Rs 2,250 crore by issuing up to 130 million convertible warrants and 320.8 million fresh equity shares at an issue price of Rs 50 each.

Carlyle Aviation currently holds a 7 percent stake in SpiceJet, with promoter Ajay Singh retaining a significant 57 percent stake.

The budget carrier is facing a cash crunch, dealing with various legal cases related to non-payment of dues to former promoters and aircraft lessors.

In July, the company announced that Singh would inject Rs 500 crore through fresh equity shares, convertible instruments, or a combination of both.

The improved profitability of India's aviation sector, along with the exit of Wadia Group's budget carrier GoFirst due to bankruptcy, has enhanced SpiceJet's outlook for debt repayment and financial management.

In August 2023, SpiceJet slightly increased its market share, beating Akasa Air, which witnessed a 30 percent rise in passenger traffic compared to the previous year.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.