Low-fare airline SpiceJet has firmed up plans to issue over 6.4 crore convertible warrants to its promoters to raise funds. The fund infusion of over R130 crore, at current price, will see the promoter Kalanithi Maran and his KAL Airways raising 5% more stake in the company.
The board of directors at a meeting, on January 9, decided to issue up to 6,41,69,000 warrants of the face value of R10 each on preferential basis to promoters with the option to apply for and be allotted an equivalent number of equity shares, the airline said in a filing to stock exchanges. In December last year, the promoters of SpiceJet increased their stake to 53.48% by acquiring 2.8% equity on conversion of warrants worth over R54 crore.
Since 2011, the promoter have infused funds into the airline four times. Post the additional funding, the promoters holding will raise to 58.46% of the expanded capital. As of December 2013, the promoters holding was at 53.48%, out of which Maran holds 24.24% and the balance 29.24% was held by KAL Airways. The proceeds from the infusion will be utilised towards working capital requirements of the company in accordance with the terms of the issue.
