The Delhi High Court is not entirely convinced with Spicejet's arguments for not issuing warrants to former promoter Kalanithi Maran, reports CNBC-TV18.
Spicejet has claimed that the Bombay Stock Exchange (BSE) and the market regulator Securities and Exchange Board of India (SEBI) do not seem to be willing to grant the necessary approvals.
Maran had appealed to HC that Spicejet should either issue warrants or return Rs 688 crore that was provided by him at the time of his exit from the company last year. From the amount, SpiceJet had pleged to issue non-convertible preference shares worth Rs 370 crore and 189 million convertible warrants.Spicejet’s Chairman and Managing Director Ajay Singh, on the other hand, has said while the company is not opposed to issuing warrants, it is facing regulatory hurdles. Maran can make fresh application, but the amount cannot be returned, he added.
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