SpiceJet announced on Monday that its founder, Ajay Singh, will infuse Rs 294 crore into the airline through a promoter group entity by converting warrants into equity shares, increasing the promoter group's shareholding to more than 33 percent.
Singh, the carrier's Chairman and Managing Director, will infuse funds through Spice Healthcare Pvt Ltd, a promoter group company.
SpiceJet announced on Monday that Singh will invest 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).
"This strategic move will increase the consolidated shareholding of the promoter group in SpiceJet from the current 29.11 percent to 33.47 per cent," according to the news release.
Furthermore, Singh is selling up to 3.15 crore equity shares of the airline, and the proceeds will be used to enable Spice Healthcare Pvt Ltd to partially fund the remaining 75% of the amount at the time of allotment of the equity shares pursuant to the exercise of the option to convert the said warrants.
Singh's fund infusion is related to a previously announced fundraising plan.
The SpiceJet board/board committee will meet on or before March 18 to approve the allotment of equity shares in accordance with the exercise of the warrant conversion option, according to a release issued on Monday.
Singh stated that the investment will help strengthen the airline's financial position and drive growth.
Against the backdrop of SpiceJet's headwinds, he added that the successful conversion of warrants and subsequent capital infusion represents another significant step in the airline's ongoing turnaround strategy.
On Thursday, Singh sold nearly 1% of his stake in the budget airline for Rs 52 crore in an open market transaction.
SpiceJet reported an after-tax profit of Rs 26 crore for the three months ended December 2024, boosted by improved overall performance.
SpiceJet shares rose more than 4% to Rs 47.30 each in morning trading on the BSE
