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Hot Pursuit News

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(17 Mar 2025, 11:22)

SpiceJet jumps as founder invests Rs 294 crore to increase shareholding

Spicejet added 2.90% to Rs 46.80 after its founder and promoter, Ajay Singh, through his promoter group company, Spice Healthcare, announced an additional Rs 294.09 crore investment, increasing the group's shareholding in the airline.


This investment will be made through the conversion of 13,14,08,514 warrants into an equivalent number of equity shares (13.14 crore equity shares). As a result, the consolidated shareholding of the Promoter Group in SpiceJet will increase from 29.11% to 33.47%.

The proceeds from the sale of shares will be used to partially fund the remaining 75% of the amount required for the allotment of equity shares after the warrants are converted. This infusion highlights the Promoter Group’s continued confidence in SpiceJet’s long-term growth potential and strategic direction.

Ajay Singh, chairman and MD of SpiceJet, said, “This fresh infusion reaffirms our unwavering commitment to the airline and its bright future. This investment will further strengthen our financial position and drive growth. SpiceJet has always been a resilient airline, and with this fresh capital, we are well-positioned to enhance our operations and seize new opportunities.”

Meanwhile, a meeting of the board committee of SpiceJet is scheduled to take place on or before 18 March 2025, to approve the allotment of equity shares resulting from the warrant conversion.

SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s, & freighters and is the country's largest regional player operating multiple daily flights under UDAN, or the Regional Connectivity Scheme. The majority of the airline's fleet offers SpiceMax, the most spacious economy class seating in India.

The company reported a standalone net profit of Rs 24.96 crore in Q3 FY25 as compared with a net loss of Rs 301.45 crore in Q3 FY24. Revenue from operations fell 35.33% to Rs 1231.06 crore in Q3 FY25 as compared with Rs 1,903.57 crore in Q3 FY24.

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