SpiceJet completes allotment of 34 lakh shares after conversion of warrants on preferential basis
On March 5, Spicejet announced a settlement with aircraft leasing company Cross Ocean Partners regarding a dispute worth around $11.2 million (Rs 93 crore).
New Delhi: National carrier SpiceJet has said that its preferential allotment committee has completed the allotment of 34,66,666 equity shares after converting an equivalent number of warrants allotted on a preferential basis.
“We would like to inform you that the Preferential Allocation Committee of the Board of Directors of the Company at its meeting held on March 11, 2024, inter alia, considered and approved the allotment of 34,66,666 shares of face value of 34,66,666 shares. Rs 10 per piece at an issue price of Rs 50 per piece to Elara India Opportunities Fund Limited on account of conversion of 34,66,666 warrants allotted to Elara India Opportunities Fund Limited on preferential basis on January 25, 2024,” the company said in a grant application.
On Thursday, SpiceJet said it has settled a dispute involving Rs 413 crore with aircraft leasing company Echelon Ireland Madison One Ltd, making it the third dispute resolution announced by the crisis-hit airline in less than a fortnight.
The latest settlement will result in savings of $48 million (Rs 398 crore), the airline said in a statement. As part of the Rs 413 crore dispute settlement, SpiceJet will acquire two airframes.
In general, an airframe is an aircraft without engines.
The airline, which is facing multiple headwinds and is in the process of raising funds, is acquiring a total of three airframes through the three dispute settlements. The airframes are from Boeing 737 NG aircraft.
“These successful settlements have resulted in total savings of Rs 685 crore for the airline,” the statement said.
On March 5, the airline announced a settlement with aircraft leasing company Cross Ocean Partners regarding a dispute worth about $11.2 million (Rs 93 crore). As part of the arrangement, the airline will receive an airframe and an engine.
Earlier, on February 28, SpiceJet said it has settled the dispute worth $29.9 million (Rs 250 crore) with Celestial Aviation. On Thursday, the airline’s shares rose 3.52 percent to Rs 64.10 apiece in morning trade on the BSE.
(With PTI inputs)