Marans resign from SpiceJet board; airline to raise `1,500 cr through issue of securities

ON JAN 15, SPICEJET’S BOARD HAD APPROVED PLANS TO ALLOW MARAN TO OFFLOAD HIS STAKE IN THE AIRLINE TO CO-FOUNDER AJAY SINGH

NEW DELHI: Co-founder Ajay Singh moved a step closer to taking control of cash-strapped SpiceJet, with the airline’s board informing the Bombay Stock Exchange that existing promoters have agreed to sell and transfer 58.46% stake, worth about `700 crore, to Singh. The board has also approved raising `1,500 crore through issue of fresh securities.

Singh had exited the budget carrier earlier in 2010.

“Kalanithi Maran, Kavery Kalanithi and S Natrajhen have resigned from the board with immediate effect and the board has accepted the same,” SpiceJet said in a statement.

“The board of directors of the company at its meeting has taken on record the share sale and purchase agreement dated January 29 between the company, Kalanithi Maran, Kal Airways Private Ltd and Ajay Singh,” it informed the BSE.

The airline’s board approved increasing the authorised share capital to `2,000 crore divided into 1.5 billion equity shares of `10 each and five million nonconvertible cumulative redeemable preference shares of `1,000 each.

The board has also decided to issue equity shares or any instrument convertible into equity shares via global depository receipts, American depository receipts or foreign currency convertible bonds for an aggregate amount not exceeding `1,500 crore to any person or persons, whether or not they are shareholders of the company.

The airline has also issued 3.75 million non-convertible cumulative redeemable preference shares of `1,000 each to Maran and Kal Airways on a preferential basis. It has also changed its registered office from Tamil Nadu to New Delhi.

“The airline’s operations have stabilised. The future looks pretty optimistic,” said aviation expert Subhash Goyal.