SpiceJet Rs2.94 billion capital infusion |

The Delhi-based low-cost airline SpiceJet is to get an infusion of Rs2.94 billion. The airline’s promoter and founder, Ajay Singh, will infuse the funds into the airline through a promoter company, Spice Healthcare Private Limited, by converting 131.4 million warrants into an equivalent number of equity shares, it was announced on Monday. This move will see the promoter group's consolidated shareholding in the low-cost airline reach 33.47 percent from 29.11 percent. It was not immediately clear when the transaction would be completed or what the funds raised would be used for. In a statement, the airline said that Singh, the company's promoter, is disposing of up to 31.5 million equity shares and utilizing the proceeds to enable Spice Healthcare Private Limited to partially fund the balance of 75 percent of the amount at the time of allotment of the equity shares pursuant to exercise the option to convert the warrants. The statement adds that the company's board or board committee will meet on or before March 18 to approve the allotment of equity shares pursuant to the exercise of the warrant conversion option. “With this fresh capital, we are well positioned to enhance our operations and seize new opportunities,” Singh said. Singh sold close to a one percent stake in the airline recently The announcement comes days after Singh sold nearly one percent of his holding in SpiceJet through an open market transaction. The move raised Rs520 million (https://www.ndtvprofit.com/markets/spicejets-ajay-singh-sells-1-stake-for-rs-52-crore). The stake sale saw Singh's holding in the low-cost airline fall to 22 percent from 22.90 percent earlier. In comparison, the combined shareholding of the promoters and the promoter group of the company’s shares declined to 28.23 percent from 29.13 percent. In September last year, the airline raised Rs30 billion through the sale of shares to qualified institutional buyers, which it intended to use for settling the liabilities of creditors, including aircraft and engine lessors, engineering vendors, and financiers (Goldman Sachs allotted 5.33% QIP in SpiceJet |). SpiceJet’s domestic market share falls The latest domestic market data released by the Directorate General of Civil Aviation for January this year shows that SpiceJet saw a marginal decline in its domestic market share to 3.2 percent from 3.3 percent earlier (Domestic air traffic grows 11% in January as IndiGo extends lead—CNBC TV18). Litigation issues continue to plague airline On March 8 this year, NGF Charlie, NGF Genesis, and NGF Alpha—three leasing companies—filed petitions seeking the initiation of insolvency proceedings against SpiceJet, claiming dues totaling $12.68 million. During the proceedings of the National Company Law Tribunal earlier that week, the low-cost airline sought time to resolve the matter as settlement talks were going on (SpiceJet in trouble as 3 aircraft lessors, ex-pilot file insolvency pleas | Company News—Business Standard). The leasing companies had leased five Boeing 737s to the Indian airline.

US Flight Planner - US DoT On-Time Data	Airbus vs Boeing - Official OEM Data
US Airline Schedule Performance - US DoT Data	Daily OEM Production & Deliveries -

Subscribe To Our Newsletter

Related News

Subscribe To Our Newsletter

Related News

The Airshow Was Weak. The Reason Matters.

“Growth Is Definitely There In Africa”

Argentina’s Aviation Market Leaves Flybondi Behind