SpiceJet promoter group raises stake to 33.47%

SpiceJet on Monday said that its founder and promoter Ajay Singh will infuse ₹294.09 crore into the airline through Spice Healthcare Private Ltd (a promoter group company) by conversion of 13.14 crore warrants into an equivalent number of equity shares.

The Gurugram-based budget carrier said this strategic move will increase the consolidated shareholding of the promoter group in SpiceJet from the current 29.11% to 33.47%.

Singh, promoter of the company, is disposing up to 3.15 crore equity shares of the company and will utilise the proceeds to enable Spice Healthcare Private Limited to partially fund the balance of 75% of the amount at the time of allotment of the equity shares pursuant to exercise of option to convert said warrants.

Reacting to the development, shares of SpiceJet rose as much as 7% in intraday trade after the announcement to hit a high of ₹48.60 on the BSE.

The low-cost airline said this fund infusion underscores the promoter group’s continued confidence in SpiceJet’s long-term growth potential and strategic direction.

“A meeting of the Board/Board Committee of the Company will be held shortly, on or before March 18, 2025, to approve the allotment of equity shares pursuant to the exercise of the warrant conversion option,” the airline said.

“This fresh infusion reaffirms our unwavering commitment to the airline and its bright future. This investment will further strengthen our financial position and drive growth. SpiceJet has always been a resilient airline and with this fresh capital, we are well positioned to enhance our operations and seize new opportunities,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

The successful conversion of warrants and subsequent capital infusion marks another significant step in SpiceJet’s ongoing turnaround strategy. SpiceJet swung into profit in the third quarter of the ongoing fiscal. The budget carrier reported a net profit of ₹26 crore for the quarter ended December, marking a turnaround from the previous quarter a year ago when it posted a loss of ₹300 crore.

SpiceJet’s total revenue jumped by 35% to ₹1,651 crore, driven by strong passenger demand, improved yields, and enhanced operational efficiency. Passenger Load Factor (PLF), the carrying capacity which is utilised, stood at 87%. Total passenger revenue per available seat kilometre (RASK) stood at ₹4.57 in Q3 FY25. Operating profit or earnings, before, interest, tax depreciation and amortisation came in at ₹210 crore in Q3 FY25 compared with ₹3 crore in the corresponding quarter last year.

The airline’s successful ₹3,000 crore Qualified Institutional Placement (QIP), which saw participation from leading global investors, has significantly strengthened its financial position. This has enabled the resolution of major legacy liabilities, fleet expansion, and accelerated operational growth, the airline said.

The Ajay Singh-led airline’s net worth turned positive for the first time in a decade with the carrier achieving a positive net worth of ₹70 crore.