New Delhi: SpiceJet, headquartered in Gurgaon, has allotted shares and warrants amounting to Rs 744 crore in the first tranche of its preferential issue.
The company’s Board of Directors decided on Thursday, marking a significant step in bolstering the company’s financial position.
According to the airline spokesperson, the Board of Directors on Thursday approved the allotment of 5.55 crore equity shares on a preferential basis to 54 subscribers. Additionally, the Board approved the allotment of 9.33 crore warrants, offering the option to apply for and be allotted an equivalent number of equity shares, on a preferential basis to Elara India Opportunities Fund Ltd and Silver Stallion Ltd.
The company’s Chairman and Managing Director Ajay Singh said: “We are pleased with the completion of the first tranche of our preferential allotment, which demonstrates the confidence of investors in SpiceJet’s growth prospects and we remain committed to completing the further allotment process progressively.
“The fund infusion will open new avenues for SpiceJet, resulting in a more cash-efficient operation, expanded fleet and network.”
The company is due to complete another tranche of equity/warrants raise from remaining subscribers and has requested additional time from the competent authority to complete the process under the ongoing preferential issue, as approved by the company shareholders on January 10. The extension is necessitated on account of limited banking days arising from long weekends during the intervening period.
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