NEW DELHI: Ajay Singh, the promoter of cash-strapped SpiceJet, has decided to infuse Rs 500 Crore into the airline by way of subscribing fresh equity shares and/or convertible instruments, said the company in a statement on Wednesday.
The infusion of fresh capital, as per SpiceJet will strengthen the company’s financial position and is a powerful vote of confidence in its future and long-term viability. “The Board of Directors of the company, which met on July 12, 2023, considered options for raising fresh capital for the company where Ajay Singh, promoter of the company, in order to strengthen the financial position of the company, offered to infuse Rs 500 crore,” said Spicejet.
With this fund infusion by the Promoter, SpiceJet would be entitled to additional credit facilities of INR 206 Crore under the Emergency Credit Line Guarantee Scheme. Ajay Singh, Chairman and MD, SpiceJet said, “This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, grow its revenue and profits.” It is already utilising $50 million ECLGS funds that it has received and its own cash to revive its grounded aircraft.