SpiceJet raising Rs 133.34 cr from promoters

SpiceJet raising Rs 133.34 cr from promoters

Private airline SpiceJet promoters including Kalanithi Maran of Sun Group are set to increase their stake by five percent infusing around Rs 133.34 crore in the company through preferential share route.

Informing BSE, SpiceJet said it obtained the Board's approval on January 9, 2014 to issue warrants up to 64,169,000 with an option to apply for and be allotted equivalent number of equity shares of the face value of Rs 10 each to the promoters of the company, on preferential basis on a price to be determined as per SEBI ICDR Regulations.

With this, SpiceJet will be tapping promoters for infusing money in the airline for the fifth time since 2011.

A top official of Sun Group, which promotes the airline, said the proposed issue of warrants comes with an option to apply for equity shares. The total amount of funds to be infused (including premium) with the proposed issue is expected to be around Rs 133.34 crore.

He also pointed out that this additional funding, promoters holding in the private airline will raise to 58.46 per cent of the expanded capital after the allotment of the new shares.

As of December 2013, the promoters were holding 53.48 per cent, of which Maran was holding around 24.24 per cent and the remaining 29.24 per cent was held by KAL Airways Private Ltd, also promoted by the Maran family.

In December 2013, SpiceJet had allotted 1.5 crore equity shares consequent upon conversion of an equal number of warrants to Maran, who infused around Rs 54.27 crore. Maran converted the warrants, allotted on January 9, 2013, into equity shares.The proceeds from the infusion will be deployed into working capital requirements of the company in accordance with the terms of the issue. Earlier, the promoters in 2011-12, 2012-13 and 2013-14 had infused equity capital to the tune of Rs 130.92 crore, Rs 99.44 crore and Rs 130 crore respectively.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry