SpiceJet to raise Rs 130cr from promoters
Billionaire Kalanithi Maran-led budget airline SpiceJet Ltd on Friday confirmed that it would raise nearly Rs Rs 130 crore from its planned warrants issue to its promoters.
The company will issue up to 6,41,69,000 warrants, with each having a face value of Rs 10. The warrants will be issued on preferential basis to the airline's promoters with the option to apply for and be allotted an equal number of equity shares.
The decision to issue warrants was taken by board of directors at a meeting on 9th of January.
The proceeds from the infusion will be utilised towards working capital requirements of the company in accordance with the terms of the issue.
The move will increase Maran and his KAL Airways' stake holding in the SpiceJet by 5 per cent. In December 2013, SpiceJet's promoters hiked their stake to 53.48 per cent by acquiring 2.8 per cent equity on conversion of warrants worth more than Rs 54 crore.
Out of 53.48 per cent stake holding in the carrier, Maran holds 24.24 per cent and the remained stake is held by KAL Airways. Since 2011, the promoters have injected funds into the loss-making airline four times.