SpiceJet promoter Kalanithi Maran will infuse about Rs100 crore equity in the airline, a month after its auditor raised concerns about its eroding net worth. This is the second round of equity infusion by Maran in five months. With this, Maran’s stake will go up by 5% to 48.59%.
SpiceJet is expanding fast, having logged a 29% growth in traffic and 41% rise in revenue in the third quarter of 2011-12. However, the 2004-founded airline posted a loss of Rs39 crore due to a rise in operating costs. The fresh round of infusion is expected to aid the Gurgaon-headquartered airline’s expansion as it hopes to induct 10 planes this year.
“The equity infusion will be completed by the first week of April,” said SpiceJet chief executive officer Neil Mills, following the airline board's decision to allot fresh shares on Friday. “It is a clear demonstration of promoter interest.”
Maran, who took over the airline in 2010, will get 42.9 million additional shares in lieu of investment. The company, he said, was looking at other options to raise capital, including debt, but no decision had been taken it. “At this point of time, we are comfortable,” he said. As on December 31, the airline had a total share capital of Rs441 crore.
Mills said SpiceJet was operating 270 flights. “We will continue to expand in regional as wel as international routes,” he said. He added the airline will induct 10 planes this year. It will be a mix of turbo prop Bombardier Q400s and Boeing 737s.
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SpiceJet is expanding fast, having logged a 29% growth in traffic and 41% rise in revenue in the third quarter of 2011-12. However, the 2004-founded airline posted a loss of Rs39 crore due to a rise in operating costs. The fresh round of infusion is expected to aid the Gurgaon-headquartered airline’s expansion as it hopes to induct 10 planes this year.
“The equity infusion will be completed by the first week of April,” said SpiceJet chief executive officer Neil Mills, following the airline board's decision to allot fresh shares on Friday. “It is a clear demonstration of promoter interest.”
Maran, who took over the airline in 2010, will get 42.9 million additional shares in lieu of investment. The company, he said, was looking at other options to raise capital, including debt, but no decision had been taken it. “At this point of time, we are comfortable,” he said. As on December 31, the airline had a total share capital of Rs441 crore.
Mills said SpiceJet was operating 270 flights. “We will continue to expand in regional as wel as international routes,” he said. He added the airline will induct 10 planes this year. It will be a mix of turbo prop Bombardier Q400s and Boeing 737s.
....more info