SpiceJet shareholders okay issuing 35.9 mn shares to Maran

Low-cost air carrier SpiceJet today said its shareholders had approved issuing over 35.9 million shares to promoter Kalanithi Maran on preferential basis, estimated at around Rs 130 crore.

Shareholders have also approved appointment of five directors on board, including promoter Kalanithi Maran, SpiceJet said in a filing to the Bombay Stock Exchange (BSE).

Further, the authorised share capital of the company would increase to Rs 565 crore, from Rs 500 crore, it informed the BSE.

Other directors appointed on the board are Kavery Kalanithi, J Ravindran, Nicholas Martin Paul, and M K Harinarayanan. Also, SR Batliboi and Co has been reappointed as the auditors of the company.

Earlier this month, SpiceJet CEO Neil Mills had said that the preferential allotment to Kalanithi Maran would be made at 50% premium at current market price.

"We are selling 5% stake to Maran through preferential allotment for Rs 130 crore. With this, his stake will increase from 38.16% to 43%. He is taking preferential allotment pretty much at a premium of 50% on current market price. The current market price is Rs 28," Mills had said.

In the April-June quarter of the this fiscal, SpiceJet reported a net loss of Rs 71.96 crore against a net profit of Rs 55.2 crore in the same quarter a year ago.

Earlier in July, SpiceJet had said its promoter group firm Kal Airways has pledged 86.17% of its total holding in the company. It amounts to 33.27% of the outstanding shares of the company.

Kal Airways holds over 156.5 million shares in SpiceJet.