SpiceJet promoter holding to rise to 33.5% on the conversion of warrants; share price jumps over 5%

SpiceJet's share price climbed over 5 per cent in morning trade on the BSE on Monday, March 17, after the airline, in an exchange filing, announced that a promoter group had converted warrants into shares. This conversion will increase the promoter's holding to nearly 33.5 per cent in SpiceJet.

SpiceJet share price opened at ₹45.20 against its previous close of ₹45.48 and jumped 5.4 per cent to the level of ₹47.93. Around 9:55 AM, the stock traded 5.12 per cent higher at ₹47.81.

If the stock ends in the green today, it will end the losing streak of the last seven consecutive sessions. In these last seven sessions, the stock has lost 10 per cent of its market valuation.

The airline stock hit a 52-week high of ₹79.90 on September 16 last year and a 52-week low of ₹39.91 on February 18 this year.

Promoter's stake in SpiceJet rises

SpiceJet on March 17 announced that its founder and promoter, Ajay Singh, through a promoter group company- Spice Healthcare Private Limited- will infuse ₹294.09 crore into the company through the conversion of 13,14,08,514 warrants into an equivalent number of equity shares. 

The conversion of warrants into shares will increase the consolidated shareholding of the promoter group in SpiceJet from the current 29.11 per cent to 33.47 per cent.

“Spice Healthcare Private Limited, a promoter group company, has converted 13,14,08,514 warrants into an equivalent number of equity shares of SpiceJet,” said the company in an exchange filing during market hours on March 17.

“Ajay Singh, a promoter of Spicejet, intends to dispose of up to 3.15 crore equity shares of the company and utilise the proceeds to enable Spice Healthcare Private Limited to partially fund the balance of 75 per cent of the amount at the time of allotment of the equity shares,” it said.

"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," SpiceJet said.

Meanwhile, last Thursday, March 13, promoter Ajay Singh sold a significant number of the company’s shares through a block deal.

Singh, the Chairman and Managing Director of SpiceJet, sold 1,15,38,462 shares of SpiceJet, representing a 0.89 per cent stake in the company, via block deals on March 13, according to official data available on the BSE.

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