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Sunday 24 August 2014

Maran to pump Rs 200cr into SpiceJet via warrants

New Delhi:  Paving the way for fund infusion, low-cost carrier (LCC) SpiceJet has increased its authorized share capital from Rs 1,000 crore to Rs 1,500 crore. The negative net worth LCC has also got board approval to "allot up to 18.9 crore warrants convertible into equivalent number of equity shares, in various tranches, to the promoters of the company, on preferential basis".

Before this board-approved move, promoter Kalanithi Maran had hit the threshold limit of 53% holding in the company and he could not have infused more funds. With the enhancement of authorized share capital and decision to issue warrants, the Maran family — which has so far put in about Rs 1,400 crore into SpiceJet — will now be able to pump in another Rs 200 crore in tranches as convertible debentures.

The LCC desperately needs money to stay afloat as it faces statutory tax issues and is yet to give Form 16 of last fiscal to its employees.
Read news in full 23/08/14 Times of India

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