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SpiceJet promoter group raises stake to 33.47%

SpiceJet promoter group raises stake to 33.47%

  • 17.03.2025 08:18
  • fortuneindia.com
  • Keywords: High Debt, Negative Cash Flow

SpiceJet promoter Ajay Singh increased his stake to 33.47% by converting warrants worth ₹294 crore into shares. The move boosted investor confidence, causing shares to rise 7%. This reflects the promoter group's faith in SpiceJet's long-term growth.

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Estimated market influence

SpiceJet

Positivesentiment_satisfied
Analyst rating: N/A

Ajay Singh's stake increase and capital infusion demonstrate confidence in SpiceJet's future growth.

Spice Healthcare Private Ltd

Positivesentiment_satisfied
Analyst rating: N/A

As a promoter group company, it supports SpiceJet’s strategic moves by providing necessary funds.

Context

SpiceJet Promoter Stake Increase Analysis

  • Stake Increase: Ajay Singh, SpiceJet's founder, increased his stake through Spice Healthcare Private Ltd by converting 13.14 crore warrants into equity shares, raising the promoter group's shareholding from 29.11% to 33.47%.
  • Funding Details: The infusion of ₹294.09 crore underscores confidence in SpiceJet’s growth potential and strategic direction.
  • Market Reaction: SpiceJet shares surged by up to 7% intraday, reaching a high of ₹48.60 on the BSE.
  • Financial Performance:
    • Q3 FY25 net profit: ₹26 crore (vs. loss of ₹300 crore YoY).
    • Total revenue growth: 35% to ₹1,651 crore.
    • Passenger Load Factor (PLF): 87%.
    • RASK: ₹4.57 in Q3 FY25.
    • Operating profit: ₹210 crore (vs. ₹3 crore YoY).
  • Strategic Developments:
    • Successful completion of a ₹3,000 crore Qualified Institutional Placement (QIP) with global investor participation.
    • Resolved major legacy liabilities, expanded fleet, and accelerated operational growth.
    • Net worth turned positive for the first time in a decade: ₹70 crore.
  • Competitive Impact: The move strengthens SpiceJet’s position in the budget airline sector and signals confidence in its turnaround strategy.
  • Long-Term Effects: The capital infusion will support future operations, fleet expansion, and market opportunity seizure.
  • Regulatory Considerations: No specific regulatory impacts mentioned in the text.