SpiceJet Promoter to Infuse Rs. 500 Crore into the Company
PUNE: SpiceJet promoter Ajay Singh has announced plans to invest Rs. 500 crore into the airline by subscribing to fresh equity shares and/or convertible instruments. This capital infusion will significantly strengthen SpiceJet’s financial position and demonstrate confidence in its future and long-term viability. The decision was made during a board meeting on July 12, where Ajay Singh offered to infuse the funds to improve the company’s financial stability.
Equity Shares and Convertible Securities
The board agreed to issue equity shares and/or convertible securities/equity share warrants to the promoter and/or the promoter group of the company in one or more tranches. The issue price will be determined in accordance with the SEBI ICDR Regulations. The proposal is subject to approval from shareholders, the Securities and Exchange Board of India, and other competent authorities.
Additional Credit Facilities
As a result of this fund infusion, SpiceJet will be eligible for additional credit facilities of Rs. 206 crore under the Emergency Credit Line Guarantee Scheme.
Commitment to Growth
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed his commitment to the airline’s growth and its potential. He stated that this investment will allow SpiceJet to accelerate its growth plans, capture new market opportunities, and increase revenue and profits. Singh believes in building a sustainable and profitable business, and this investment reflects that commitment.
Revival of Grounded Aircraft
SpiceJet is already utilizing $50 million from the ECLGS funds it has received, along with its own cash, to revive its grounded aircraft. Two aircraft, a Boeing 737 and a Q400, have already been operationalized, and more planes are expected to re-join the fleet soon.
Conclusion
The infusion of Rs. 500 crore by SpiceJet’s promoter signals a significant step towards the company’s sustained growth and long-term success. It will strengthen the airline’s financial position and enable it to capitalize on new opportunities in the market. With the revival of grounded aircraft and the commitment to building a sustainable business, SpiceJet is poised for a bright future.
Summary:
- SpiceJet promoter Ajay Singh will infuse Rs. 500 crore into the company through fresh equity shares and/or convertible instruments.
- This capital infusion will strengthen SpiceJet’s financial position and demonstrate confidence in its future and long-term viability.
- The board has approved the issuance of equity shares and/or convertible securities/equity share warrants to the promoter and/or the promoter group.
- Approval from shareholders, the Securities and Exchange Board of India, and other competent authorities is required for the proposal.
- The fund infusion will make SpiceJet eligible for additional credit facilities of Rs. 206 crore under the Emergency Credit Line Guarantee Scheme.
- Ajay Singh, Chairman and Managing Director of SpiceJet, is committed to the airline’s growth and profitability.
- SpiceJet is utilizing funds to revive its grounded aircraft, with two already operationalized and more expected to re-join the fleet soon.
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