Shares of SpiceJet saw a sharp rise of nearly 5% during Monday’s trading session after the Securities and Exchange Board of India (SEBI) granted an exemption to its promoter group entity, Spice Healthcare, from making an open offer to the airline’s shareholders.
Spice Healthcare, which is set to acquire additional shares in SpiceJet, will not be required to make the open offer, as typically mandated under SEBI norms. This exemption, however, comes with certain conditions, including a longer lock-in period for the newly acquired shares.
Spice Healthcare will acquire an additional 13.14 crore equity shares of SpiceJet upon the conversion of previously issued warrants. After this, the company will hold an additional 13.74% stake in the airline, which would have normally triggered the need for an open offer to existing shareholders.
SpiceJet also announced new board appointments, reflecting its focus on improving financial health and meeting regulatory obligations.
As of 9:25 am, SpiceJet shares were trading 3.81% higher at ₹74.39 on the NSE.
