Low-cost airline SpiceJet got a shot in the arm as its promoters on Friday decided to infuse Rs 100 crore into the airline in exchange for an additional equity of 4.29 crore shares or 5 per cent of the total shares. With this,the holdings of Kalanithi Maran and his family in the carrier will go up to 48.6 per cent.
The board of the company has decided to issue and allot up to 4,29,00,000 equity shares of face value of Rs 10 at a price to be determined as per Sebi (Issue of Capital and Disclosure Requirements) Regulations,2009,to Kalanithi Maran on a preferential basis subject to the approval of the members of the company, the company informed the stock exchanges.
The fresh equity infusion comes at a time when the airlines industry is going through turbulent times. Kingfishers promoter Vijay Mallya is finding it difficult to raise fresh equity,a precondition his debtors have set before considering any fresh funds to the carrier. State-run Air India is also looking for a financial bailout.
The Chennai-based carrier enjoys 16.3 per cent marketshare as of January,making it the fourth-largest carrier among the seven and the second-largest among no-frills airlines in the country.
Maran took over as chairman of SpcieJet in November 2010 after buying out the stake held by American investor Wilbur Ross.
Reflecting the worsening condition in the aviation sector,SpiceJet reported Rs 39.3 crore loss in the December quarter. The loss came on the back of a 90 per cent spike in fuel costs which offset a 41 per cent rise in revenues.