SpiceJet announced on Monday that it has received in-principle approval from the Bombay Stock Exchange (BSE) for the issuance of equity shares and warrants convertible into equity shares on a preferential basis.
The in-principle approval from BSE is a significant development for SpiceJet, allowing the airline to proceed with the process of fund infusion. This approval is a crucial step for SpiceJet's growth, providing the necessary financial support.
This approval follows SpiceJet's successful 39th Annual General Meeting (AGM) held on January 10, where members approved a fund infusion proposal of Rs 2,242 crore.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed the importance of this approval, stating, "The in-principle approval from BSE for the fund infusion is a crucial step for SpiceJet as we embark on a journey to enhance our capabilities and strengthen our position in the Indian aviation sector. We believe the fund infusion will open new avenues for SpiceJet, enabling us to capitalize on potential opportunities and contribute to the growth of the aviation sector in India."
An airline spokesperson mentioned that a "significant portion of the fund infusion will be utilized to fuel the airline’s growth, expand its network, bring grounded planes back into operation and position SpiceJet as a more resilient and competitive player in the aviation industry." This indicates that the funds will be strategically employed to support SpiceJet's expansion, network enhancement, and overall competitiveness in the aviation market.
(With Agency Inputs)
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