SpiceJet promoters get SEBI exemption from making open offer

16 Sep 2024 , 03:26 PM

The Securities and Exchange Board of India (SEBI) has exempted SpiceJet’s promoter from the duty to make an open offer to the airline’s shareholders in connection with the acquisition of additional shares, according to an exchange filing on September 14.

Following this development, the company’s counter rose to a new 52-week high of ₹79.90 on NSE.

Spice Healthcare Pvt Ltd, the airline’s promoter company, would obtain 13,14,08,514 more equity shares upon the conversion of warrants issued to it.

Spice Healthcare, which is part of SpiceJet’s promoter group, requested this exemption because it intends to purchase further ownership in the airline without triggering a mandated open offer.

SpiceJet had requested an exemption from Sebi for launching an open offer to the airline’s shareholders. The markets regulator issued an order on September 13 granting an exemption from making the open offer under specific conditions.

SpiceJet’s proposed acquirer Spice Healthcare invested 200 Crore in the airline to meet the Emergency Credit Line Guarantee Scheme (ECLGS) condition and strengthen its financial position. Spice Healthcare subscribed to 3,41,72,000 equity shares on a preferential basis and 13,14,08,514 warrants on a preferential basis at an issue price of 29.84 per share, totalling 101.97 Crore.

Spice Healthcare issued preferential warrants on September 4, 2023, resulting in the acquisition of 13.74% of equity shares with voting rights if the warrants are exercised on or after April 1, 2024.

At around 3.11 PM, SpiceJet was trading 8.16% higher at ₹77.51, against the previous close of ₹71.66 on NSE. 

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