SpiceJet said on Wednesday that its promoter and chairman Ajay Singh would invest Rs 500 crore in the airline. With this investment, it will help in handling the financial condition of the airline as well as in getting additional funds from the government scheme. SpiceJet is currently facing several hurdles, including disputes with aircraft lessors, for which it is necessary to raise funds. In a statement, SpiceJet Chairman and Managing Director Ajay Singh said the fresh equity investment will help the carrier avail additional credit facilities of Rs 206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS).
Ajay Singh offered Rs 500 crore
During the SpiceJet airline’s board meeting to consider options for raising fresh capital, Singh offered to infuse Rs 500 crore. The Board has agreed to issue equity shares and/or convertible securities/equity share warrants on a preferential basis to the promoter and/or promoter group of the company, in one or more tranches up to Rs.500 crore.”
Singh said, “SpiceJet has a bright future and I am committed to helping it achieve its full potential. This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, increasing its revenues and profits.”
DGCA increased monitoring of the airline
Recently the Supreme Court refused to extend the time to pay media baron Kalanithi Maran and his Kal Airways in pursuance of an arbitral award of Rs 578 crore related to the share-transfer dispute. Meanwhile, aviation regulator DGCA has placed the airline under “enhanced surveillance”.
SpiceJet reported on Wednesday, “The airline is using the already received US$ 50 million ECLGS funds and its own cash to revive its grounded aircraftTwo of the grounded aircraft, a Boeing 737 and a Q400, have been operational so far and more aircraft are expected to rejoin the fleet soon.”
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