SpiceJet Chief Ajay Singh to invest Rs 294 crore via promoter entity

New Delhi: SpiceJet announced on Monday that its founder, Ajay Singh, will inject Rs 294 crore into the airline by converting warrants into equity shares through a promoter group entity. This move will raise the promoter group’s stake in the company to over 33%.

As the airline’s Chairman and Managing Director, Singh will channel the funds through Spice Healthcare Pvt Ltd, a company under the promoter group. The investment will involve converting 13.14 crore warrants into an equivalent number of equity shares, amounting to Rs 294.09 crore.

According to the official statement, this transaction will increase the promoter group’s total shareholding in SpiceJet from 29.11% to 33.47%.

Additionally, Singh plans to sell up to 3.15 crore equity shares of the airline, with the proceeds helping Spice Healthcare Pvt Ltd finance a portion of the remaining 75% of the amount required at the time of allotment of shares following the warrant conversion.

This capital infusion is part of a previously disclosed fundraising initiative. The airline’s board or a designated committee is set to convene on or before March 18 to finalize the allotment of equity shares under this conversion plan, as stated in Monday’s release.

Singh emphasized that the investment will reinforce SpiceJet’s financial standing and support its growth trajectory. Amid ongoing challenges, he highlighted that the successful warrant conversion and capital infusion mark another crucial step in the airline’s turnaround efforts.

Last Thursday, Singh divested nearly 1% of his stake in the budget carrier through an open market transaction, raising Rs 52 crore.

In its financial results for the quarter ending December 2024, SpiceJet posted a post-tax profit of Rs 26 crore, benefiting from overall operational improvements.