SpiceJet has finally changed hands with the airline’s promoters deciding to sell and transfer their entire holding of 58.46 per cent in the airline to co-founder Ajay Singh.
The share sale and purchase agreement between the promoters Kalanithi Maran, Chairman of the Sun group, his company Kal Airways and Mr. Singh was signed on Thursday.
SpiceJet, on Friday, informed the stock exchanges that its board had approved this decision, including ownership change.
With this, SpiceJet has legally changed hands though Mr. Singh, who is backed by financial investors, has been running the airline for nearly a month.
The board decided to issue equity shares or any instrument convertible into equity shares including GDRs and ADSs for an amount of Rs.1,500 crore to any persons irrespective of whether he/she is a shareholder.
The board also decided to increase the authorised capital of the company to Rs.2,000 crore divided into 150 crore equity shares of Rs.10 each and 50 lakh non-convertible cumulative redeemable preference shares Rs.1,000 each.
Mr. Maran and Kal Airways will be allotted 37. 5 lakh non-convertible cumulative redeemable preference shares of Rs.1,000 each.
With the change in ownership, directors Mr. Maran, Ms. Kavery Maran and S. Natrajhen have resigned from the board with immediate effect.
The registered office of the airline has been shifted from Tamil Nadu to Delhi.
Mr. Singh, who had co-founded the airline in 2005, is pumping in Rs.1,500 crore along with financial investors to revive the low cost airline that had plunged into severe financial crisis in the past few months.
The Ministry of Civil Aviation had recently cleared the proposal of the Marans for change in ownership and management control.
SpiceJet shares closed with a gain of 1.83 per cent at Rs.22.20 on the BSE.
