SpiceJet board okays sale of Marans'stake to Ajay Singh

SpiceJet co-founder Ajay SinghThe board of low-cost carrier SpiceJet on Thursday approved the sale of the entire 58.46-per cent stake held by its promoters the Marans to airline's original founder Ajay Singh as the airline goes through another ownership change.

SpiceJet plans to raise Rs1,500 crore by way of issuing securities and allotting non-convertible preference shares to the Marans, who will be exiting the management.

The airline would also issue up to 37.5 lakh non-convertible cumulative redeemable preference shares of Rs1,000 each to Kalanithi Maran or Kal Airways or both on a preferential basis.

The board has also accepted the resignations of Maran, Kavery Kalanithi and S Natrajhen with immediate effect.

In a regulatory filing today, SpiceJet said its Board of Directors have taken on record the share sale and purchase agreement between the company, Kalanithi Maran, Kal Airways and Ajay Singh.

Pursuant to the pact, Maran and Kal Airways would sell and transfer their entire shareholding of 58.46 per cent stake to Singh.

Besides, the board has cleared a proposal to issue "equity shares / warrants and / or any instrument convertible into equity shares whether optionally or otherwise / Global Depository Receipts (GDRs) / American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs) ("Securities") for an aggregate amount not exceeding Rs15,000,000,000 or equivalent currency(ies) to any person or persons, whether or not shareholder of the company."

Following the deal, the registered office of SpiceJet would be shifted from Tamil Nadu to Delhi and there would be an alteration in the articles of association of the company.

The company's authorised share capital would be increased to Rs2,000 crore. This would be divided into 150 crore equity shares of Rs10 each and 50 lakh non-convertible cumulative redeemable preference shares Rs1,000 each.

SpiceJet would seek shareholders' approval through postal ballot for all these proposals which have been cleared by its Board.

Earlier this month, Singh returned to SpiceJet with a long-term plan entailing an investment of up to Rs1,500 crore as Maran family agreed to cede control with transfer of over 53 per cent stake in the carrier (See: Marans exit SpiceJet, transfer ownership to Ajay Singh ).