Low-fare airline company SpiceJet will raise funds from its promoters by issuing 6.4 crore convertible warrants.
The price will be determined according to SEBI’s regulations. However, based on the current share price, it could be worth nearly Rs 120 crore.
A PTI report quoting S.L. Narayanan, Group CFO, Sun Group, said the total amount estimated is to be around Rs 133.34 crore.
On Friday, the shares of SpiceJet declined 2.1 per cent to Rs 18.60 on the BSE.
SpiceJet, the country’s second largest low-fare airline, is controlled by media baron Kalanithi Maran of Sun TV Network.
SpiceJet will issue warrants of face value Rs 10 each on preferential basis to its promoters with the option to apply for and be allotted an equivalent number of equity shares, the company said in a filing to the BSE.
At a meeting on Thursday, the company’s directors decided to conduct a postal ballot to seek shareholder approval for the warrant issue and other business proposals to empower the board to borrow in excess of the paid-up capital and free reserves, the company said.
In December, the promoters increased their stake in the airline to 53.48 per cent by acquiring 2.8 per cent equity on conversion of warrants worth over Rs 54 crore.