SpiceJet promoter Ajay Singh has decided to infuse Rs 500 crore in the company by means of subscribing fresh equity or by other convertible instruments.
The infusion of fresh capital will prove to be a substantial strength in the financial position of the company and is a powerful vote of confidence in the future and long-term visibility, the company said.
It marks a pivotal moment in SpiceJet’s journey towards sustained growth and long-term success, it added.
In the board meeting of SpiceJet which was held on July 12, had discussions over raising fresh capital into the company in order to boost the financial position of the aviation giant and the firm’s promoter Ajay Singh announced that he shall be infusing Rs 500 crore in the company finances. The board discussed on the offer by Singh and concluded to issue equity shares or convertible issues to the promoter on preferential basis against the amount that Ajay Singh will be investing in SpiceJet. Market regulator SEBI shall be contacted for the approval in the deal as per the statement by SpiceJet.
With the fund infusion by promoter Ajay Singh, SpiceJet would be entitled to additional credit facilities of INR 206 Crore under the Emergency Credit Line Guarantee Scheme.
Ajay Singh, who also serves as the Chairman and Managing Director of SpiceJet said,
“I am pleased to announce that I will infuse INR 500 Crore into the Company. SpiceJet has a bright future and I am committed to helping it achieve its full potential. This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, grow its revenue and profits. We are committed to building a sustainable and profitable business, and this investment is a reflection of that commitment.”
“I am confident that SpiceJet, a powerful brand which has served passengers for over 18 years, will succeed in the long term and I am excited to be a part of this journey,” he added.
The airlines firm is already using the $50 million ECLGS funds it received and its own working capital to revive the grounded aircrafts. A Boeing 737 and a Q400 have been operationalized and more aircrafts are expected to join the fleet soon.
