Mumbai: SpiceJet's promoters will increase their stake in the company by almost 5 per cent by infusing around Rs 133.34 crore in the low-fare airline.
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 Rs 10 each on preferential basis to promoters with the option to apply for and be allotted an equivalent number of equity shares, SpiceJet said in a BSE filing on Friday.
"The proposed issue of warrants with an option to apply for equity shares will eventually result in increase of SpiceJet's equity share capital by another 64.17 million shares. The total amount of funds to be infused (including premium) with the proposed issue is estimated to be around Rs 133.34 crore," said S.L. Narayanan, Group CFO, Sun Group.
"With this additional funding, the promoters will hold about 58.46 per cent of the expanded capital after the allotment of the new shares," he added.
The price is to be determined as per SEBI's regulations on Issue of Capital and Disclosure Requirements, the company said. The directors decided to conduct a postal ballot to give effect to the warrant issue and other business of empowering the board to borrow in excess of paid-up capital and free reserves, SpiceJet said.
In December, the promoters of SpiceJet increased their stake in the carrier to 53.48 per cent by acquiring 2.8 per cent equity on conversion of warrants worth over Rs 54 crore. Shares of SpiceJet ended 2.11 per cent lower at Rs 18.60 on the BSE.
