SpiceJet will be raising additional funds through the issue of convertible debentures and / or warrants convertible up to a maximum of 52.177 million equity shares to the promoter of the company on a preferential basis.
The price will be determined as per SEBI ICDR (issue of capital and disclosure requirements) guidelines.
The news came after the close of trading hours on Wednesday.
During the day, shares of SpiceJet gained more than 7 per cent to close at Rs. 37.40 on the BSE.
Earlier Sun Group, on Wednesday, said its aviation venture SpiceJet needed capital for expansion and would explore options, including equity contribution from existing shareholders and raising debt, but promoters have no plans to sell their shares. The promoters currently hold 48.59 per cent in the equity capital of SpiceJet.
The market capitalisation of the company has improved from Rs.1,660 crore on Tuesday to Rs.1,811 crore on Wednesday fuelled by the rally in the stock.
Sun Group Chief Kalanithi Maran and his wife Kavery Maran have resigned from one of the promoter entities of SpiceJet, triggering speculations about a possible sale of Maran family’s majority stake in the air carrier.
No stake sale
The group has, however, denied any plans for promoters’ stake sale in SpiceJet, saying it could consider various other options to raise capital to finance fleet expansion plans.
“We certainly need funds for fleet expansion and whenever there is an attractive opportunity (for partial stake sale), we will definitely look at it, but there is nothing on cards as of now,” Sun Group CFO S. L. Narayanan told PTI over phone.
Meanwhile, stocks of other airlines also witnessed good momentum ahead of the winter session of Parliament, which starts from Thursday.
Jet Airways on Wednesday ended the day at Rs.451.50 apiece, higher by 9.20 per cent.
The stock had hit a 52-week high during the day.