In a significant move to strengthen its financial position, SpiceJet has successfully allocated shares and warrants totaling Rs 744 crore in the initial tranche of its preferential issue. The decision, greenlit by the company's Board of Directors on Thursday, underscores a positive step towards enhancing SpiceJet's economic standing.
As per the airline spokesperson, the Board, in its meeting on Thursday, granted approval for the allotment of 5.55 crore equity shares on a preferential basis to 54 subscribers. Additionally, the Board gave the nod for the allotment of 9.33 crore warrants, providing the option for subscription and equivalent allotment of equity shares, preferentially offered to Elara India Opportunities Fund Ltd and Silver Stallion Ltd.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed satisfaction, stating, "We are pleased with the completion of the first tranche of our preferential allotment, which demonstrates the confidence of investors in SpiceJet’s growth prospects, and we remain committed to completing the further allotment process progressively."
He added, "The fund infusion will open new avenues for SpiceJet, resulting in a more cash-efficient operation, expanded fleet, and network."
SpiceJet is poised to execute another tranche of equity/warrants raise from remaining subscribers. The company has sought additional time from the competent authority to fulfill the process as approved by the shareholders on January 10. The extension is deemed necessary due to limited banking days arising from extended weekends during the intervening period.
(With Agency Inputs)
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