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Singh now holds over 60.31 per cent stake in the carrier
Budget carrier SpiceJet has finally received the much-need funding, with the new owner Ajay Singh infusing Rs 500 crore (Rs 5 billion) in the airline as part of his Rs 1,500-crore (Rs 15-billion) investment plan to revive it.
Singh paid Rs 500 crore (Rs 5 billion) to SpiceJet on Wednesday, sources said, adding that two more instalments will be paid to the airline by April.
Singh had early this week said that the airline should receive the second instalment his Rs 1,500 crore (Rs 15 billon) investment by Wednesday.
Singh had earlier infused Rs 100 crore (Rs 1 billion) in SpiceJet, which was used mainly to clear some tax dues.
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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 through issuance of fresh securities under a revival plan.
Singh now holds over 60.31 per cent stake (more than 36.15 crore shares) in the carrier after buying former promoter Marans' entire stake, according to a regulatory filing.
Prior to acquiring Marans' entire stake, Singh's shareholding stood at 1.85 per cent.
The deal has already been cleared by the Competition Commission of India and Singh is now awaiting approval from the Home Ministry for his appointment as Director on the board of SpiceJet with majority stake in his hand.
Image: A SpiceJet aircraft; Photograph: Reuters