SpiceJet promoter Ajay Singh has decided to infuse Rs 500 crore into SpiceJet by way of subscribing fresh equity shares and/or convertible instruments.
The infusion of fresh capital will not only substantially strengthen the company’s financial position but will also serve as a powerful vote of confidence int he long run. The move will help the airline with the long-term success and sustained growth.
The Board of Directors of the Company met on July 12 to discuss various options for raising fresh capital for the company. Ajay Singh, the promoter of the company, offered to infuse Rs 500 crore in order to strengthen the company’s financial position.
The board deliberated on the matter and agreed to issue equity shares and/or convertible securities/equity warrants on preferential basis to the Promoter and/or the Promoter group of the company.
This decision will help SpiceJet leverage its limit at credit facilities as now it is entitled to an additional Rs 206 crore under Emergency Credit Line Guarantee Scheme.