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SpiceJet13

Ajay Singh to infuse 500 crore into SpiceJet, which will strengthen its financial position

It comes at time Supreme Court has declined to give more time to no-frills carrier on interest payment

Our Special Correspondent Mumbai Published 13.07.23, 08:27 AM
Promoter Ajay Singh to infuse Rs 500 crore

Promoter Ajay Singh to infuse Rs 500 crore

Promoter Ajay Singh will infuse Rs 500 crore into SpiceJet.

The infusion is expected to strengthen the financial position of the company.

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It comes at a time the Supreme Court has declined to give more time to the no-frills carrier on the interest payment to media baron Kalanithi Maran and his Kal Airways in pursuance of an arbitral award of Rs 578 crore related to a share-transfer dispute.

SpiceJet is yet to report numbers for the year ended March 31, 2023.

SpiceJet had recently disclosed that it could not hold the meeting of the audit committee and the board members in the past for approval of financial results for the financial year ended March 31 as a key member of its audit panel was unwell.

The airline said in a regulatory filing that the latest fundraising would enable it to access additional credit facilities of Rs 206 crore from the government under the Emergency Credit Line Guarantee Scheme (ECLG Scheme) as the Rs 500 crore mobilisation will be considered an equity contribution by the promoter under the scheme.

“The board... considered options for raising fresh capital for the Company wherein Ajay Singh, promoter of the company, to strengthen the financial position of the company offered to infuse Rs 500 crore by way of subscription to equity shares and/or convertible securities/equity share warrants on a preferential basis along with the promoter group of the company in terms of Sebi Regulations, 2018,” SpiceJet said.

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