Ajay Singh now holds over 60% stake in SpiceJet

SpiceJet's new promoter Ajay Singh now holds over 60 per cent stake in the carrier after buying former promoter Marans' entire stake.

Singh, who co-founded the airline some years back, snapped up 58.46 per cent stake from Marans as part of a revival plan that would also see Rs 1,500 crore (Rs 15 billion) capital infusion into the airline.

According to a regulatory filing made by SpiceJet, Singh holds more than 36.15 crore shares or 60.31 per cent stake in the carrier.

At Wednesday's closing price of Rs 24.95 apiece on the BSE, Singh stake is worth more than Rs 900 crore (Rs 9 billion).

Prior to acquiring Marans' entire stake, his shareholding stood at 1.85 per cent. Out of Marans' entire stake, more than 8.3 crore shares are pledged with banks, the filing said. The former promoters' 58.46 per cent translated to over 35.04 crore shares.

As part of a share sale and purchase agreement, Marans transferred their 58.46 per cent to Singh on February 23, 2015.

"Ajay Singh has become the promoter of the company and Kalanithi Maran and Kal Airways Private Limited have ceased to be promoters of the company," the carrier had said on Tuesday.

In late January, SpiceJet board had approved transfer of entire 58.46 per cent stake of Marans to Singh, while the company would raise Rs 1,500 crore (Rs 15 billion) through issuance of fresh securities under a revival plan.

After approval from the Home Ministry, Singh would be appointed as Director on the board of SpiceJet with majority stake in his hand.

The deal has already received clearance from the Competition Commission of India (CCI).