SpiceJet Allots Rs 744 Crore in Shares and Warrants in First Tranche of Preferential Issue
In a significant move to strengthen SpiceJet's financial standing, the company's Board of Directors has approved the allocation of shares and warrants totaling Rs 744 crore in the initial phase of its preferential issue. As part of this decision, 5.55 crore equity shares will be allotted on a preferential basis to 54 subscribers, and 9.33 crore warrants will be allocated to Elara India Opportunities Fund Ltd and Silver Stallion Ltd. These warrants provide the option to apply for and receive an equivalent number of equity shares. This strategic initiative is aimed at enhancing SpiceJet's overall financial position.
Ajay Singh, the Chairman and Managing Director of SpiceJet, expressed satisfaction with the successful conclusion of the initial phase of their preferential allotment. He emphasized that the completion of this tranche reflects investors' confidence in SpiceJet's potential for growth. Singh reiterated the company's dedication to advancing the subsequent allotment phases progressively. "The fund infusion will open new avenues for SpiceJet, resulting in a more cash-efficient operation, expanded fleet and network".
SpiceJet is set to finalize an additional tranche of equity and warrants raised from the remaining subscribers. The company has sought an extension from the competent authority to complete this process within the approved framework of the ongoing preferential issue, as endorsed by the shareholders on January 10. The need for an extension arises due to a limited number of banking days resulting from extended weekends during the intervening period.
