SpiceJet Shares Rise 6% As Airline Announces Fresh Infusion Of Rs 294 Crore – News18
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SpiceJet surged 6% after the company announced that its CEO and promoter, Ajay Singh, would inject Rs 294.09 crore into the airline through a promoter group company, Spice Healthcare
SpiceJet Shares Price
SpiceJet’s shares surged 6% on March 17 after the company announced that its CEO and promoter, Ajay Singh, would inject Rs 294.09 crore into the airline through a promoter group company, Spice Healthcare. By 10 am, the airline’s stock was trading 6% higher at Rs 48 per share.
In a press release, SpiceJet revealed that the capital infusion would occur through the conversion of 13.14 crore warrants into an equal number of equity shares. This will increase the promoter group’s consolidated shareholding in the airline to 33.47% from the current 29.11%.
The company also stated that Ajay Singh would sell up to 3.15 crore equity shares to partially fund Spice Healthcare’s allotment of equity shares via the warrant conversion.
Ajay Singh, CEO of SpiceJet, commented, “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 new capital, we are well-positioned to enhance our operations and seize new opportunities.”
The conversion of warrants to equity shares is expected to be approved by SpiceJet’s board on or before March 18.
Despite today’s gains, the stock remains significantly lower than its 52-week high of Rs 79.90 per share, although it has made a strong recovery from its 52-week low of Rs 39.91 per share.
Earlier last week, Singh had sold 1.15 crore equity shares (representing 0.9% of the company) at an average price of Rs 45.34 per share, with the total transaction valued at Rs 52 crore.
After several quarters of losses, SpiceJet returned to profitability with a net profit of Rs 25 crore for the October-December period of the current financial year. Singh stated, “For the first time in a decade, the company turned net worth positive—an important milestone that highlights the success of our turnaround strategy. The past is behind us, and we are now focused on building a stronger, more resilient future for SpiceJet.”
