SpiceJet raises Rs 130 cr from Kalanithi Maran

Budget carrier SpiceJet has raised Rs 130 crore (Rs 1.3 billion) through issue of securities in two tranches to promoter Kalanithi Maran this week.

". . . the company has allotted 3,50,000 14 per cent unsecured compulsorily convertible debentures of Rs 100 each aggregating to Rs 35,000,000 to Kalanithi Maran, promoter of the company on preferential basis," the low cost carrier said in a BSE filing on Friday.

According to a separate stock exchange filing by the company, Kalanithi Maran and Kal Airways have increased their holding in SpiceJet to 52.14 per cent.

As on September quarter, both the promoters held 48.59 per cent stake in the airline. Earlier this week, the company had raised Rs 126.5 crore (Rs 1.26 billion) through issue of securities to Kalanithi Maran.

On December 26, shareholders approved proposals to raise Rs 145 crore (Rs 1.45 billion)

through issue of debentures and warrants, on preferential basis, to its promoter Kalanithi Maran.

The budget airline, promoted by Sun Group, is looking for funds for expansion. In November last year, the board had approved issuance of convertible debenture and or warrants convertible into up to a maximum of 5.21 crore (52.1 million) equity shares to the promoter of the company on preferential basis.

The carrier said in November last year that it needs capital for expansion and would explore options, including equity contribution from existing shareholders and raising debt.

Sun Group CFO S L Narayanan had said in terms of available financing options, the company could look at debt, lease finance and funding from existing shareholders, among others.

Shares of the company closed at Rs 46.60, down 1.48 per cent from its previous close on the BSE.