Ajay Singh Injects $34M into SpiceJet to Boost Growth
Ajay Singh, promoter and managing director of SpiceJet, has invested over INR2.94 billion (USD34 million) in the low-cost Indian airline through his company, Spice Healthcare Private Limited. This move fulfills a portion of his earlier commitment to invest INR5 billion (USD57.9 million) in the carrier.
Singh converted 131.4 million warrants into an equal number of equity shares, increasing his and his affiliates’ stake in SpiceJet from 29.11% to 33.47%. To help finance the transaction, Singh is also selling up to 31.5 million of his personal shares in SpiceJet and will transfer the proceeds to Spice Healthcare.
“This investment will further strengthen our financial position and drive growth,” Singh said. “SpiceJet has always been a resilient airline, and with this fresh capital, we are well positioned to enhance our operations and seize new opportunities.”
Earlier in March, Singh sold 11.5 million shares at an average price of INR45.34 (USD0.52) each, generating INR520 million (USD6 million). That tranche represented over 35% of the total shares he planned to sell. The sale temporarily reduced his personal stake in the airline to 22%, and it marked the largest open market sale of SpiceJet shares in more than a decade, according to stock exchange filings.
In September 2024, SpiceJet raised INR30 billion (USD345 million) through a qualified institutional placement. The capital was used to stabilize operations and improve financial health. The airline recently reported a quarterly profit of INR260 million (USD3 million), a significant turnaround from a loss of INR3 billion (USD34.5 million) a year earlier.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com