Mumbai: Shareholders of SpiceJet have approved the companys proposal to raise funds through the issuance of equity shares and warrants, according to a regulatory filing following the annual general meeting (AGM) on January 10.
The shareholders voted in favour of both the issue and allotment of equity shares on a preferential basis and the issue and allotment of warrants with an option to apply for and be allotted an equivalent number of equity shares on a preferential basis, stated the exchange filing.
While reports before the AGM suggested the airline aimed to secure approval from stakeholders to raise Rs 2,250 crore for expansion and revitalization, the filing did not specify the targeted fundraising amount.
In the previous month, the airlines board had already approved the proposal to raise Rs 2,250 crore by issuing up to 130 million convertible warrants and 320.8 million fresh equity shares at an issue price of Rs 50 each.
Carlyle Aviation currently holds a 7 percent stake in SpiceJet, with promoter Ajay Singh retaining a significant 57 percent stake.
The budget carrier is facing a cash crunch, dealing with various legal cases related to non-payment of dues to former promoters and aircraft lessors.
In July, the company announced that Singh would inject Rs 500 crore through fresh equity shares, convertible instruments, or a combination of both.
The improved profitability of Indias aviation sector, along with the exit of Wadia Groups budget carrier GoFirst due to bankruptcy, has enhanced SpiceJets outlook for debt repayment and financial management.
In August 2023, SpiceJet slightly increased its market share, beating Akasa Air, which witnessed a 30 percent rise in passenger traffic compared to the previous year.
