Spicejet seeks shareholders' nod to hike promoters holding

Written by PTI | Mumbai | Updated: Jan 13 2014, 22:35pm hrs
SpiceJet flightSpiceJet increased their stake in carrier to 53.48 pct by acquiring 2.8 pct equity on conversion of warrants worth over Rs 54 crore. (Ap)
Budget carrier Spicejet has sought shareholders' approval to increase the promoters stake in the company by almost 5 per cent.

The board of directors at a meeting on January 9, decided to issue up to 6,41,69,000 warrants of the face value of Rs 10 each on preferential basis to promoters with the option to apply for and be allotted an equivalent number of equity shares.

"The proceeds of the preferential issue are proposed to be utilised for expansion program of the company, its working capital requirements and repayment of loans," according to the company's postal ballot notice on the BSE.

The proposed issue of warrant shall be acquired by Kal Airways and Kalanithi Maran, promoters of the company, it said.

"The proposed issue of warrants with an option to apply for equity shares will eventually result in increase of SpiceJet's equity share capital by another 64.17 million shares. The total amount of funds to be infused (including premium) with the proposed issue is estimated to be around Rs 133.34 crore," SL Narayanan, Group CFO, Sun Group said on Friday.

"With this additional funding, the promoters will hold about 58.46 per cent of the expanded capital after the allotment of the new shares," he had said.

In December, the promoters of SpiceJet increased their stake in the carrier to 53.48 per cent by acquiring 2.8 per cent equity on conversion of warrants worth over Rs 54 crore.

Shares of SpiceJet closed the day at Rs 18.45, down 0.81 per cent from its previous close on the BSE.