Stock Market News: SpiceJet, small cap airline company, has informed that it will hold Annual General Meeting (AGM) on January 10, 2024. The company will consider and adopt the audited financial statements for the financial year ended March 31, 2023.
The company will also consider issue and allotment of equity shares on preferential basis. According to the BSE filing of the company, “The Board to create, offer, issue and allot up to 31,83,00,000 equity shares of the face value of Rs.10 each of an aggregate nominal amount of up to Rs.3,18,30,00,000 at an issue price of Rs 50 per share on preferential basis, in one or more tranches.”
In its BSE filing, SpiceJet stated, “has expressed interest with the resolution professional of Go First and wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet”.
Meanwhile, in a strategic move to bolster SpiceJet’s financial position and spur growth, Mumbai-based businessman Harihara Mahapatra and his wife Preeti have announced a substantial investment of Rs 1,100 crore in the airline. The acquisition secures the couple a 19 per cent stake in SpiceJet, as revealed in a stock exchange filing by the airline.
The investment plan includes participation from Aries Opportunities Fund, holding three per cent, and Elara Capital, securing an eight per cent stake through the conversion of warrants.
Earlier, the Board of Directors of SpiceJet unanimously approved the infusion of fresh capital exceeding Rs 2,250 crore.
This move involves issuing equity shares to financial institutions, foreign institutional investors (FII’s), high net worth individuals (HNI’s), and private investors.
An official from SpiceJet said, “The Board’s unanimous decision reflects our commitment to strengthening the airline’s financial foundation and propelling its growth trajectory. The issuance of equity shares and warrants under private placement is subject to necessary approvals from shareholders and regulatory bodies.”
The proposed preferential issues encompass a diverse group of investors, including Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher, Resonance Opportunities Fund, among others, aiming to raise funds aggregating over Rs 2,250 crore.
The Board of Directors, in a meeting held on December 12 gave the green light for issuing up to 31,83,00,000 equity shares of face value Rs10 each (‘Tranche I Issue’) and up to 13,00,00,000 warrants, convertible to equity shares (‘Tranche II Issue’), on a preferential basis.
The funds from the Tranche I and Tranche II issues, totaling Rs 15,91,50,00,000 and Rs 6,50,00,00,000, respectively, are earmarked for addressing statutory obligations, settling past dues with creditors, uplifting and ungrounding the fleet, acquiring new aircraft, meeting ATF expenses, employee-related expenses, and general corporate purposes.
(With IANS Inputs)
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