SpiceJet board approves plans to raise Rs.1,500 crore

Budget passenger carrier SpiceJet plans to raise funds up to Rs.1,500 crore through issue of securities, the company informed the Bombay Stock Exchange (BSE) through a regulatory filing Friday.

The decision was taken by the company board Thursday.

"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) for an aggregate amount not exceeding Rs.1,500 crore," the filing said.

According to the regulatory filing, the company's board also approved the increase in authorised share capital of the company to Rs.20 crore, comprising 1.5 crore equity shares of 10 rupees each and 50 lakh non-convertible redeemable preference shares of 1,000 rupees each.

The company said that it will allot 37.5 lakh non-convertible cumulative redeemable preference shares of Rs.1,000 each to Kalanithi Maran or Kal Airways.

The regulatory filing further informed the BSE that Kalanithi Maran, Kavery Kalanithi and S.Natrajhen resigned from the company board.

The regulatory filing added that the company's registered office will be shifted from Tamil Nadu to New Delhi. The company already was headquartered in Gurgaon.

On Jan 15, the board had approved the plans to allow Kalanithi Maran to off-load his stake in the company to Ajay Singh after regulatory clearances.

This is Singh's second innings with the airlines which he co-founded with Bhupendra Kansagra in 2005. However, he had sold his stake along with Kansagra and assets buyout specialist Wilbur Ross in 2010 to Sun Group's Kalanithi Maran.