SpiceJet shares fly 7% as promoter to infuse Rs 294 crore in company

A meeting of the board committee will be held shortly, on or before March 18, 2025, to approve the allotment of equity shares pursuant to the exercise of the warrant conversion option

SpiceJet shares advanced 6.8 per cent on BSE at Rs 48.6 per share in Tuesday's trade. The northward movement in the stock came after the company's promoter Ajay Singh announced to infuse Rs 294.09 crore through Spice Healthcare Private Limited in the company; 13,14,08,514 warrants will be converted into an equivalent number of equity shares (131.4 million equity shares). 

 

This strategic move will increase the consolidated shareholding of the promoter group in SpiceJet from the current 29.11 per cent to 33.47 per cent.

 

Around 10:08 AM, SpiceJet share price was up 6.82 per cent at Rs 48.58 per share on BSE. In comparison, the BSE Sensex was up 0.60 per cent at 74,269.69. The market capitalisation of the company stood at Rs 6,226.43 crore. The 52-week high of the stock was at Rs 79.9 per share and the 52-week low was at Rs 39.91 per share. 

 

"SpiceJet today announced that its Founder and Promoter, Ajay Singh, through M/s Spice Healthcare Private Limited (a Promoter Group Company), will infuse Rs 294.09 crore into the company through the conversion of 13,14,08,514 warrants into an equivalent number of equity shares (131.4 million equity shares)," the filing read.   ALSO READ: Maharashtra Seamless rises 2% on Rs 298-cr deal win; check key details here

 

Further, Singh is disposing up to 31.5 million equity shares of the company and utilise the proceeds to enable Spice Healthcare Private Limited to partially fund the balance of 75 per cent of the amount at the time of allotment of the equity shares.

 

Besides, a meeting of the Board/Board Committee of the company will be held shortly, on or before March 18, 2025, to approve the allotment of equity shares pursuant to the exercise of the warrant conversion option.

 

“This fresh infusion reaffirms our unwavering commitment to the airline and its bright future. This investment will further strengthen our financial position and drive growth. SpiceJet has always been a resilient airline and with this fresh capital, we are well positioned to enhance our operations and seize new opportunities," said Ajay Singh, chairman and managing director, SpiceJet. 

 

As per the filing, the successful conversion of warrants and subsequent capital infusion marks another significant step in SpiceJet’s ongoing turnaround strategy

 

In the past one year, SpiceJet shares have lost 24 per cent against Sensex's rise of 1.4 per cent.