Following the airline’s announcement in an exchange filing that a promoter group had converted warrants into shares, SpiceJet’s share price increased by more than 5% during morning trading on the BSE on Monday, March 17. With this conversion, the promoter’s stake in SpiceJet will rise to over 33.5%. In contrast to its previous finish of ₹45.48, SpiceJet’s share price opened at ₹45.20 and surged 5.4% to reach ₹47.93. At approximately 9:55 AM, the stock was up 5.12% at ₹47.81. The stock will break its seven-session losing streak if it closes the day in the green. The stock has lost 10% of its market value during the past seven sessions. On March 17, SpiceJet declared that its founder and promoter, Ajay Singh, will convert 13,14,08,514 warrants into an equal number of equity shares in order to inject ₹294.09 crore into the business through a promoter group firm called Spice Healthcare Private Limited.
By converting warrants into shares, the promoter group’s consolidated stake in SpiceJet will rise from its existing 29.11 percent to 33.47 percent. In an exchange filing made during market hours on March 17, the firm stated that Spice Healthcare Private Limited, a promoter group entity, had exchanged 13,14,08,514 warrants into an equivalent number of equity shares of SpiceJet. “Spicejet promoter Ajay Singh plans to sell up to 3.15 crore equity shares of the company and use the proceeds to help Spice Healthcare Private Limited partially fund the remaining 75% of the amount at the time of equity share allocation,” the statement stated.
“Consequent upon completion of transactions above, the consolidated shareholding of the promoters group in the company will increase from present 29.11 per cent to 33.47 per cent,” stated SpiceJet. In the meantime, promoter Ajay Singh sold a sizable portion of the company’s shares in a block deal last Thursday, March 13. Through a block sale, Singh, SpiceJet’s chairman and managing director, sold 1,15,38,462 shares, or 0.89 percent of the firm.