Maran’s SpiceJet stake hike OK’d

SpiceJet said its shareholders have OK'd Kalanithi Maran picking up an additional 5% equity.

Written by Agencies | New Delhi | Published: April 4, 2012 8:18:51 pm

No-frills airline SpiceJet today said its shareholders have approved promoter Kalanithi Maran picking up an additional 5 per cent equity by infusing about Rs 100 crore in the company.

The move will take the overall holding of promoters in the airline to 48.6 per cent.

SpiceJet informed BSE that shareholders have approved the allotment of up to 42,900,000 equity shares to Maran on a preferential basis.

The filing also said that the board had conducted a postal ballot to give effect to the above decisions.

Reflecting the prevailing market conditions,SpiceJet had reported Rs 39.3 crore loss in the December quarter,on the back of a 90 per cent spike in fuel costs which offset a 41 per cent rise in revenues.

The airline enjoys 16.3 percent market share as of January,making it the fourth largest carrier among the seven and the second largest among the no-frills airlines.

The airline further said that shareholders have also approved the appointment of S Natarajhen as a wholetime director of the company,to be designated as “executive director”.

Maran,the media baron-turned airline owner,took over as Chairman of SpiceJet in November 2010 after buying out American investor and turnaround king,Wilbur Ross.

Shares of the company closed at Rs 26.75 apiece,up 3.5 per cent over their previous close on BSE.

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