New Delhi: India's second largest budget carrier by market share SpiceJet Ltd's promoter Kalanithi Maran has planned to raise his shareholding by 5% to 53.6% to bring in Rs 1.84 billion equity into the airline, the Business Standard said, citing Sun Group Chief Financial Officer S L Narayanan.
SpiceJet is an aviation venture of Sun Group.
"The fresh infusion by Maran would be Rs 184 crore (Rs 1.84 billion) post the conversion at an average price of Rs 36.18 a share.... The money will be utilised to settle some loans getting partly retired and towards pre delivery payment of additional fleets," the daily quoted Narayanan, as saying.
Of the total proposed 5% stake buy, 3.6% will be through debentures and 1.4% will be warrant.
The airline will seek approval from shareholders through postal ballot for issuance of compulsory convertible debentures of a total minimum value of Rs 1.3 billion and warrants of an aggregate face value of Rs 150 million to Maran.
Maran infused Rs 1 billion for 5% stake in the airline in Apr 2012 and 1.3 billion for 5% stake in Sep 2011.