India’s budget carrier SpiceJet announced Thursday that businessman Ajay Singh, its main shareholder and chairman, would provide $61 million. To meet his funding obligations, shares, convertible securities or share warrants would be issued preferentially to him according to exchange data. Under this deal, SpiceJet may become eligible for additional credit facilities of 2.06 billion rupees under government emergency credit line guarantee programme. Singh owns 50.6% of SpiceJet according to exchange data while aircraft lessors want repossess some of its planes
SpiceJet shares have fallen nearly 20% this year compared with an increase of 36% by IndiGo. Media reports have claimed that Indian aviation authorities have placed SpiceJet under greater surveillance; however, the airline denies this allegation.
SpiceJet Limited provides air transport services for passengers as well as freighter and logistics operations, operating both domestic and international routes with its fleet of Boeing 737 aircraft. In addition, SpiceJet also operates an extensive ground transportation network to bring cargo services directly from domestic to international locations.
