Spicejet Plans To Raise 1,500 Crore; Marans Exit Board

NEW DELHI: Taking forward change of control at SpiceJet, its Board has approved transfer of Maran family's entire 58.46 per cent existing stake worth about 700 crore at current price to original owner Ajay Singh, while raising 1,500 crore through issuance of fresh securities.

Besides, Marans would also infuse 375 crore into the budget carrier in lieu of 'non convertible preference shares' to be alloted to them despite them offloading their entire existing equity stake in favour of Singh and resigning from the Board of the airline.

While the pricing details with regard to share transfer by Marans were not disclosed, sources said Singh might also infuse fresh funds into the carrier and bring in some foreign investors into the airline.

The SpiceJet Board, in a meeting held yesterday, has also approved change in registered office of Gurgaon-headquartered airline from Tamil Nadu to Delhi, while the company's Articles of Association would also be amended.

Besides, Kalanithi Maran, his wife Kavery Kalanithi and Managing Director S Natrajhen have resigned from the Board with immediate effect to make way for new directors in wake of new ownership.

The embattled airline, which received a lifeline from original promoter Singh earlier this month, would issue up to 37.5 lakh non-convertible cumulative redeemable preference shares of 1,000 apiece to Kalanithi Maran or Kal Airways or both on a preferential basis.

In a regulatory filing today, SpiceJet said its Board of Directors have taken on record the share sale and purchase agreement between the company, Kalanithi Maran, Kal Airways and Ajay Singh.

Pursuant to the pact, Maran and Kal Airways would sell and transfer their entire shareholding, aggregating to 58.46 per cent stake, to Singh.

Besides, the Board has cleared a proposal to issue "equity shares/warrants and/or any instrument convertible into equity shares whether optionally or otherwise/Global Depository Receipts (GDRs)/American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs) ("Securities") for an aggregate amount not exceeding Rs 15,000,000,000 or equivalent currency(ies) to any person or persons, whether or not shareholder of the company."

The company's authorised share capital would be increased to 2,000 crore. This would be divided into 150 crore equity shares of 10 each and 50 lakh non-convertible cumulative redeemable preference shares 1,000 each.

SpiceJet would seek shareholders' nod through postal ballot for all these proposals.

Shares of SpiceJet, where Singh was one of the two original co-founders, rose more than 2 per cent to 22.25 in afternoon trade on the BSE.

Natrajhen was among the first key appointments made after the carrier's takeover by Kalanithi Maran in November 2010.

At that time, Natrajhen was appointed as Chief Operating Officer (COO) while Maran became the Chairman.

Natrajhen remained as COO from November 2010 to November 2011. Then, he served as Additional Director and Whole-Time Director for three years.

Later, he was re-designated as Managing Director with effect from September 2012.

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