SpiceJet plans to raise Rs 1,500 crore; Marans exit Board

Low cost carrier SpiceJet, which is going through an ownership change, plans to raise Rs 1,500 crore (Rs 15 billion) by way of issuing securities and allotting non-convertible preference shares to Marans, its promoters, who will be exiting the company.

The Board of SpiceJet, in its meeting on Thursday, has approved the entire 58.46 per cent stake sale of its promoter group, Marans, to Ajay Singh.

The embattled airline, which received a lifeline from original promoter Singh earlier this month, would also issue up to 37.5 lakh non-convertible cumulative redeemable preference shares of Rs 1,000 apiece to Kalanithi Maran or Kal Airways or both on a preferential basis.

The Board has also accepted the resignations of Maran, Kavery Kalanithi and S Natrajhen with immediate effect.

In a regulatory filing on Friday, SpiceJet said its Board of Directors have taken on record the share sale and purchase agreement between the company, Kalanithi Maran, Kal Airways and Ajay Singh.

Pursuant to the pact, Maran and Kal Airways would sell and transfer their entire shareholding aggregating to 58.46 per cent stake to Singh.

Besides, the Board has cleared a proposal to issue "equity shares/warrants and/or any instrument convertible into equity shares whether optionally or otherwise/Global

Depository Receipts (GDRs)/American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs) ("Securities") for an aggregate amount not exceeding Rs 15,000,000,000 or equivalent currency(ies) to any person or persons, whether or not shareholder of the company."

Post deal, the registered office of SpiceJet would be shifted from Tamil Nadu to Delhi and there would be an alteration in the articles of association of the company.

The company's authorised share capital would be increased to Rs 2,000 crore (Rs 20 billion). This would be divided into 150 crore equity shares of Rs 10 each and 50 lakh non-convertible cumulative redeemable preference shares Rs 1,000 each.

SpiceJet would seek shareholders' nod through postal ballot for all these proposals which have been cleared by its Board.

Earlier this month, Singh returned to SpiceJet with a long-term plan entailing an investment of up to Rs 1,500 crore (Rs 15 billion) as Maran family agreed to cede control with transfer of over 53 per cent stake in the carrier.

Shares of SpiceJet rose more than one per cent to Rs 22.15 in early trade on Friday on the Bombay Stock Exchange.