Free Press Journal

SpiceJet gets shareholders nod to raise up to Rs 5,000 cr



Low-cost air carrier SpiceJet today said its shareholders have approved a proposal to raise funds worth up to Rs 5,000 crore.

The shareholders, at the company’s 31st Annual General Meeting held here yesterday, also approved the appointment of promoter Ajay Singh and his wife Shivani Singh as directors, the company said in a regulatory filing.

Besides, the shareholders have also given their nod to the appointment of R  Sasiprabhu as an Independent Director of the Company, it said.

Singh, earlier a co-founder of SpiceJet in 2005, took back its control after acquiring the entire 58.46 per cent stake of Kalanithi Maran and Kal Airways Pvt Ltd in February this year.

His holding in the company currently stands at 60.32 per cent.

Singh had said yesterday that the airline was looking to place order for new planes this fiscal.

“We will take the best decision in the interest of the company. We hope that we can do it in this financial year,” he had said after the AGM, while adding that the response to the request for proposal (RFP) for new aircraft was being evaluated.

The shareholders also approved the airline’s plans to raise loans up to Rs 5,000 crore through various instruments.

At present, SpiceJet has some 41 planes in its fleet, including 25 Boeing 737s, 14 Bombardier Q400s and two leased Airbus 320 family. The airline is believed to be looking to order close to 150 new aircraft.

Remaining profitable for the third straight quarter, SpiceJet posted a net profit of Rs 23.77 crore in the three months ended September. The carrier had a net loss of Rs 310.45 crore in 2014 September quarter.