SpiceJet on Monday said its founder Ajay Singh will infuse ₹294 crore into the airline through a promoter group entity by converting warrants into equity shares, following which the promoter group’s shareholding will increase to over 33 per cent.

Singh, also the chairman and managing director of the carrier, will be infusing the funds through Spice Healthcare Pvt Ltd, a promoter group company.

In a release on Monday, SpiceJet said Singh will infuse ₹294.09 crore into the company through the conversion of 13,14,08,514 warrants into an equivalent number of
equity shares (13.14 crore equity shares).

“This strategic move will increase the consolidated shareholding of the promoter group in SpiceJet from the current 29.11 per cent to 33.47 per cent,” the release said.

Besides, Singh is selling up to 3.15 crore equity shares of the airline and the proceeds will be used to enable Spice Healthcare Pvt Ltd to partially fund the balance of 75 per cent of the amount at the time of allotment of the equity shares under exercise of option to convert the said warrants.

The fund infusion by Singh is related to a fundraising plan announced earlier.

A meeting of the SpiceJet board/board committee will be held on or before March 18, to approve the allotment of equity shares under the exercise of the warrant conversion option, the release said on Monday.

Singh said the investment will further strengthen the airline’s financial position and drive growth.