SpiceJet promoter Ajay Singh to infuse Rs 500 crore into the airline
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 (ECLGS).
- Jul 12, 2023,
- Updated Jul 12, 2023 6:50 PM IST
SpiceJet's promoter Ajay Singh will infuse Rs 500 crore into the airline by way of subscribing fresh equity shares and/or convertible instruments, the company said on Wednesday. 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 (ECLGS).
"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," said Ajay Singh, Chairman and Managing Director, SpiceJet.
"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," he added.
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.
"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," the airline said, adding that "it marks a pivotal moment in SpiceJet's journey towards sustained growth and long-term success".
The airline said that the Board of Directors of the company, which met on Wednesday, considered options for raising fresh capital to strengthen the financial position of the firm. Ajay Singh, the promotor of SpiceJet, 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...on preferential basis in one or more tranches...," the airline said.
On Wednesday, SpiceJet's stock closed trading 4.4% higher at Rs 31.16.
SpiceJet's promoter Ajay Singh will infuse Rs 500 crore into the airline by way of subscribing fresh equity shares and/or convertible instruments, the company said on Wednesday. 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 (ECLGS).
"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," said Ajay Singh, Chairman and Managing Director, SpiceJet.
"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," he added.
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.
"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," the airline said, adding that "it marks a pivotal moment in SpiceJet's journey towards sustained growth and long-term success".
The airline said that the Board of Directors of the company, which met on Wednesday, considered options for raising fresh capital to strengthen the financial position of the firm. Ajay Singh, the promotor of SpiceJet, 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...on preferential basis in one or more tranches...," the airline said.
On Wednesday, SpiceJet's stock closed trading 4.4% higher at Rs 31.16.