Ajay Singh Boosts SpiceJet with Strategic Capital Infusion

SpiceJet's founder Ajay Singh is injecting Rs 294 crore into the airline by converting warrants into equity shares, increasing the promoter group's shareholding to over 33%. This move, through Spice Healthcare Pvt Ltd, aims to reinforce the airline's financial position amidst its ongoing turnaround strategy.

SpiceJet, the Indian airline, announced on Monday that its founder Ajay Singh will be injecting Rs 294 crore into the company by converting warrants into equity shares. This strategic move will increase the promoter group's shareholding from 29.11% to 33.47%.

The funds will be infused through Spice Healthcare Pvt Ltd, with Singh also selling up to 3.15 crore equity shares to partially finance the transaction. A SpiceJet board meeting is scheduled on or before March 18 to approve the equity shares allotment.

Singh's investment, which is a part of a previously announced fundraising plan, aims to solidify SpiceJet's financial position and highlights a significant milestone in the airline's turnaround strategy amidst recent challenges. SpiceJet shares saw an over 4% rise in BSE trading.

(With inputs from agencies.)