The shares of SpiceJet jumped 6 percent on March 17 after the company announced that its CEO and promoter Ajay Singh will infuse Rs 294.09 crore into the company via the promoter group company, Spice Healthcare. The shares of the airline were trading 6 percent higher at Rs 48 apiece as seen at 10 am.
In a press release, SpiceJet announced that the fresh infusion will take place through the conversion of 13.14 crore warrants into 13.14 crore equity shares. This is set to increase the consolidated shareholding of the promoter group in the airline to 33.47 percent from the current 29.11 percent.
Additionally, the company also announced that its CEO Ajay Singh will dispose up to 3.15 crore equity shares of the company to help Spice Healthcare partially fund the allotment of equity shares through the conversion of warrants.
SpiceJet CEO Ajay Singh said, "This fresh infusion reaffirms our unwavering commitment to the airline and its bright future. This investment will further strengthen our financial position and drive growth. SpiceJet has always been a resilient airline and with this fresh capital, we are well positioned to enhance our operations and seize new opportunities."
Notably, the conversion of warrants to equity shares is set to be approved by the company's board in a meeting on or before March 18.
Despite today’s gains, the stock is trading significantly lower than its 52-week high of Rs 79.90 per share. The stock however has strongly recovered from its 52-week low of Rs 39.91 per share.
Earlier last week, Singh had sold 1.15 crore equity shares of the company (denoting 0.9 percent stake) at an average value of Rs 45.34 per share. The overall transaction was worth Rs 52 crore.
After reeling from losses for several quarters, SpiceJet returned to the black with Rs 25 crore net profit for the October-December period for the current financial year. "For the first time in a decade, the company turned net worth positive - an important milestone that underscores the success of our turnaround strategy. The past is behind us and we are now firmly focused on building a stronger, more resilient future for SpiceJet," Singh had said in a statement.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
