Kalanithi Maran, promoter of media firm SUN TV Group, has raised his stake in budget carrier SpiceJet by converting the warrants allotted to him into shares. Maran will pick up 2.8 per cent for Rs 54.27 crore, which will increase his holding to 53.48 per cent.
Maran was issued 15 million shares on a preferential allotment basis at Rs 36.18 per unit. The warrants were allotted in January this year and were exercisable in 18 months.
The issue price to Maran is over two times the current trading price of the SpiceJet. Scrip of the company was at Rs 17.40, down 1.97 per cent on Monday at 2 pm. At the present rate, SpiceJet has a valuation of Rs 905.32 crore.
After this allotment, Maran individually holds 24.24 per cent in SpiceJet while the balance 29.24 per cent is held by his company KAL Airways Pvt Ltd.
The infusion by Maran comes as SpiceJet reported a record loss of Rs 559 crore for Q2FY14, compared with a loss of Rs 164 crore in the corresponding quarter last year. It is the biggest loss the airline has suffered in any quarter and nearly three times its loss of Rs 191crore in FY13 on the back of high fuel prices and weak rupee.