SpiceJet to raise $21m from warrants issue

Tags: News
Loss making budget carrier SpiceJet Ltd will raise about 1.33 billion rupees from a planned warrants issue to its controlling shareholder group, a senior executive said on Friday.

SpiceJet, controlled by billionaire Kalanithi Maran, said on Friday it would issue up to 64.17 million warrants that can be converted into equity shares to its controlling shareholders.

The warrants issue will result in a fund infusion of about 1.33 billion rupees into the carrier, S.L. Narayanan, chief financial officer at SpiceJet's parent Sun Group, said in a statement.

Sources told Reuters earlier this week that SpiceJet was buying up to 42 jets from Boeing Co (BA.N). The aircraft are worth about $4 billion at list price, although carriers typically get price discounts. SpiceJet has not commented on the report.

The airline posted a record loss for its second quarter ended September 30.

The controlling shareholders' stake in SpiceJet will increase to 58.5 percent after the allotment of new shares, Narayanan said, from 52.14 percent at end-September.

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