Ajay Singh to invest Rs 500 crore SpiceJet

13 Jul 2023 , 10:38 AM

Ajay Singh, the promoter of SpiceJet, has pledged to invest approximately Rs 500 crore into the airline to improve its financial position. The investment will be made through preferential subscription to equity shares or convertible securities.

According to a filing by SpiceJet, the board has approved the issuance of equity shares and/or convertible securities/equity share warrants to the promoter and/or the promoter group on a preferential basis, in one or more tranches, for a total amount of Rs 500 crore.

SpiceJet also stated that this fundraising will be considered an equity investment by the promoters under the Emergency Credit Line Guarantee (ECLG) scheme, which provides additional credit facilities of Rs 206 crore to the company.

This investment comes at a time when the Directorate General of Civil Aviation (DGCA), the aviation regulator, is reportedly closely monitoring SpiceJet. Questions about the airline’s financial stability have arisen following the bankruptcy declaration of its rival, GoFirst.

The infusion of funds from Ajay Singh highlights his commitment to strengthen SpiceJet’s financial standing and support its operations. It aims to enhance the airline’s ability to navigate challenges in the aviation industry and reinforce its stability.

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