SpiceJet promoter Ajay Singh to infuse Rs 500 crore into airline

SpiceJet promoter Ajay Singh has decided to infuse Rs 500 crore into SpiceJet by way of subscribing fresh equity shares and/or convertible instruments. The infusion of fresh capital will substantially strengthen the company’s financial position and is a powerful vote of confidence in its future and long-term viability. It marks a pivotal moment in SpiceJet’s journey towards sustained growth and long-term success.

The Board of Directors of the Company, which met on 12th July, 2023, considered options for raising fresh capital for the Company where Ajay Singh, Promoter of the Company, in order to strengthen the financial position of the Company, offered to infuse Rs 500 crore.

The Board deliberated on the matter and agreed to issue equity shares and/or convertible securities/equity share warrants on preferential basis to the Promoter and/or the Promoter Group of the Company, on preferential basis, in one or more tranches at an issue price to be determined in accordance with the SEBI ICDR Regulations for an amount of INR 500 Crore subject to the approval(s) of the shareholders of the Company, the Securities and Exchange Board of India and/or any other competent authorities and such other approvals, consent, etc. as may be required in this regard.

With this fund infusion by the promoter, SpiceJet would be entitled to additional credit facilities of Rs 206 crore under the Emergency Credit Line Guarantee Scheme.

Ajay Singh, Chairman and Managing Director, SpiceJet said, “I am pleased to announce that I will infuse Rs 500 Crore into the Company. SpiceJet has a bright future and I am committed to helping it achieve its full potential. This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, grow its revenue and profits. We are committed to building a sustainable and profitable business, and this investment is a reflection of that commitment.”

“I am confident that SpiceJet, a powerful brand which has served passengers for over 18 years, will succeed in the long term and I am excited to be a part of this journey.”

The airline is already utilising $50 million ECLGS funds that it has already received and its own cash to revive its grounded aircraft. Two of the grounded aircraft, a Boeing 737 and a Q400, have been operationalised so far and more planes are expected to re-join the fleet soon.