New Delhi: Capping weeks of uncertainty over its future, beleaguered SpiceJet on Thursday said its promoter Kalanithi Maran would transfer his entire stake in the carrier to original founder Ajay Singh as part of plans to revive it.
The proposal of the principal shareholder and promoter, Maran and KAL Airways Pvt Ltd, to transfer the ownership, management and control of the no-frills airline to Singh was approved by the SpiceJet board at its meeting on Thursday.
In a filing to the BSE, the carrier said the step is pursuant to a "Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet".
The scheme would be submitted to the civil aviation ministry for approval. SpiceJet, which has been going through a turbulent patch, has been looking to infuse fresh capital as part of efforts to revive its sagging fortunes.
Promoters, Maran and Kal Airways, hold 53.48 per cent stake in the BSE-listed SpiceJet while major 'public' shareholders include Tata group firm Ewart Investments (1.79 per cent) and Kalpana Singh (1.41 per cent). Retail investors hold 45.69 per cent of the company that has a total market value of Rs. 1,000 crore.
According to the filing, the board has further directed the company to take further steps to implement and undertake all necessary steps including to make the appropriate application before the ministry for seeking approval.
The deal involves transfer of shares estimated to be worth about Rs. 500 crore at the market value as the entire holding of over 53 per cent would be transferred to Singh.
Sun Group CFO S L Narayanan said it would transfer the entire equity stake of over 53 per cent to Singh, but would remain an investor with holding of warrants (convertible into 10 per cent stake) in the carrier.
The group would also infuse fresh capital, Narayanan said, hoping that Singh would be able to better manage the airline while saving jobs and continuing flight operations.
Sun Group is expected to infuse about Rs. 80 crore into the carrier upon exercise of warrants held by it. Sun Group entities -- Kalanithi Maran and Kal Airways -- would no more be classified as promoters and that status would be transferred to the new investor.
Narayanan did not immediately offer any comment on open offer obligations. SpiceJet COO Sanjiv Kapoor said the carrier would submit the revival plan to the civil aviation ministry on Thursday.
The SpiceJet stock surged 3 per cent to close at Rs. 18.65 on the BSE.