Ajay Singh's Strategic Moves: SpiceJet's Game-Changing Financial Decisions

Ajay Singh, the promoter of SpiceJet, sold 2 crore shares for Rs 90 crore while planning to inject Rs 294 crore through conversion of warrants. Plutus Wealth Management acquired 75 lakh shares. This financial maneuver is part of Singh's strategy for SpiceJet's turnaround amidst ongoing challenges in the aviation sector.

Ajay Singh, promoter and chairman of budget airline SpiceJet, has strategically sold 2 crore shares worth Rs 90 crore in an open market transaction. This sale translates to a 1.6% stake in the airline, traded at an average price of Rs 45 per share.

In a parallel move, boutique firm Plutus Wealth Management acquired 75 lakh shares at the same price. Ajay Singh's financial maneuvers come at a time when SpiceJet shares are on a downturn, closing at Rs 45.41 following a sixth consecutive day of losses.

To bolster SpiceJet's financial health, Singh plans to infuse Rs 294 crore by converting warrants into equity, increasing his holding to over 33%. This capital injection, facilitated through Spice Healthcare Pvt Ltd, aligns with Singh's earlier announced fundraise plan, marking an essential step in SpiceJet's turnaround strategy amidst sector challenges.

(With inputs from agencies.)