SpiceJet promoters convert 64 million warrants into shares

The company had allotted 64 million warrants to promoters to raise Rs 133 crore

The promoters of SpiceJet had converted 6,41,69,000 warrants held in the company into equal number of equity shares of Rs 10 each.

The board of directors of the company has allotted  equity shares upon conversion of warrants issued on preferential basis.

According to a company filing with the Bombay Stock Exchange, the board had allotted 4,50,00,000 equity shares to Kal Airways Pvt Ltd and another 1,91,69,000 shares to Kalanithi Maran. The total paid up capital of the company, on September 30, 2014, was 59,94,50,183, after assuming full conversion of warrants and convertible securities, says the company.

In March, 2014, the company announced that it had  allotted 6,41,69,000 warrants, having an option to apply for equivalent equity shares at a price of Rs 20.76 per equity share. The total amount of funds to be infused (including premium) would be Rs 133.22 crore.

With this additional funding, the promoters' holding would increase from the present 53.48 per cent to 58.46 per cent of the expanded capital after the allotment of new shares, added the company management during the time. Earlier, in the financial years 2011-12, 2012-13 and 2013-14, the promoters had infused equity capital to the tune of Rs 130.92 crore, Rs 99.44 crore and Rs 184.27 crore, respectively.

The conversion of warrants comes at a time when it has delayed payments to various parties, including vendors and its dues to statutory authorities. It said in a regulatory filing that it has acrrued for any known and determinable amounts of interest on such delays in accordance with contractual terms, applicable laws and regulations.

"Further, in view of the proposed plans of the management to continue the company as a going concern, management is confident that it will be able to negotiate settlements with parties to whom monies are owed, to avoid any penalties," said the company while announcing its quarterly results.