SpiceJet shareholders approve raising Rs 145 cr from Maran

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SummaryThe budget airline, promoted by Sun Group, is looking for funds for expansion.

SpiceJet today said shareholders have approved proposals to raise Rs 145 crore through issue of debentures and warrants, on preferential basis, to its promoter Kalanithi Maran.

The budget airline, promoted by Sun Group, is looking for funds for expansion.

About Rs 130 crore would be raised through issue of 14 per cent unsecured compulsorily convertible debentures.

Further, by way of allotting warrants with an option to apply for equity shares, the carrier would mop up Rs 15 crore.

Both proposals have been approved by the shareholders, SpiceJet said in a filing to the BSE.

In November, the board had approved issuance of convertible debenture and/or warrants convertible into up to a maximum of 52.177 million equity shares to the promoter of the company on preferential basis.

The carrier said last month that it needs capital for expansion and would explore options including equity contribution from existing shareholders and raising debt.

Sun Group CFO S L Narayanan had said that in terms of available financing options, the company could look at debt, lease finance and funding from existing shareholders, among others.

Meanwhile, shareholders have also given their nod for election of Kalanithi Maran and and his wife Kavery Kalanithi as directors "not liable to retire by rotation".

Shareholders have approved re-designation of S Natrajhen as Managing Director.

SpiceJet operates over 300 daily flights.

Shares of the company fell 1.58 per cent to close at Rs 43.50 on the BSE.

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