SpiceJet Shares Jump 7.50% As Co To Get Rs 500 Cr From Promoter Ajay Singh

Shares of SpiceJet on Thursday jumped 7.50 per cent after the company said its promoter and Chairman Ajay Singh will infuse Rs 500 crore into the airline, which will help boost its financial position as well as tap additional funds from a government scheme.
     
The stock climbed 7.50 per cent to Rs 33.50 on the BSE after a firm beginning.
     
In volume terms, 44.71 lakh shares of the company were traded at the BSE during the morning trade.
     
The budget carrier, which is facing multiple headwinds, including disputes with aircraft lessors, has been looking to raise funds.
     
In a statement on Wednesday, SpiceJet said the fresh equity infusion by Singh, who is also the Chairman and Managing Director, will help the carrier in accessing additional credit facilities of Rs 206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS).
     
During the meeting of the airline's board, which considered 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 preferential basis to the promoter and/or the promoter group of the company, on preferential basis, in one or more tranches" for up to Rs 500 crore.