SpiceJet Gets Fresh Rs 1,500 cr Funds

SpiceJet Gets Fresh Rs 1,500 cr Funds

BENGALURU:Low cost carrier SpiceJet will get funds of Rs 1,500 crore through issuance of fresh securities. In a board meeting on Thursday, the cash-starved carrier saw the transfer of shares from media baron Kalanithi Maran to original promoter Ajay Singh.

But Maran would also infuse Rs 375 crore in lieu of ‘non convertible preference shares’, the company said. Promoters like KAL Airways and Maran will not sell and transfer their entire shareholding aggregating to 350,428,758 equity shares (58.46 per cent) to Singh.

SpiceJet has been facing trouble to stay afloat over mounting losses and need for funds in recent months.

Both Maran and his wife, Kavery Kalanithi as well as Managing Direct S Natrajhen have resigned from the board.

The meeting also saw the clearance of to create, offer, issue and allot up to 3.75 lakh non-convertible cumulative redeemable preference shares of  Rs 1,000 each to  Kalanithi Maran and/or Kal Airways Pvt Ltd on preferential basis, SpiceJet said.

Shares of the company was 1.83 per cent higher on Friday on the Bombay Stock Exchange.

“To create, issue, offer and allot equity shares/warrants and/or any instrument convertible into equity shares whether optionally or otherwise/Global Depository  Receipts (GDRs)/American Depository Receipts (ADRs)/Foreign Currency Convertible Bonds (FCCBs) (“Securities”) for an aggregate amount not exceeding  Rs 15,000,000,000 or equivalent  currency) to any person or persons, whether or not shareholder of the Company,” SpiceJet said.

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