Spice Healthcare Private Limited, a company owned by Ajay Singh, who is also the promoter and managing director of SpiceJet (SG, Delhi International), will invest more than INR2.94 billion rupees (USD34 million) in the low-cost carrier, meeting a previous investment commitment of INR5 billion (USD57.9 million).
Singh, through Spice Healthcare, converted 131,408,514 warrants into an equivalent number of equity shares. The transaction increases the stake in SpiceJet held by Singh and his associated entities from 29.11% to 33.47%. In separate transactions, Singh is selling up to 31.5 million of his SpiceJet shares. He will make the proceeds available to Spice Healthcare. These proceeds will partially fund the investment commitment.
"This investment will further strengthen our financial position and drive growth," said Singh. "SpiceJet has always been a resilient airline, and with this fresh capital we are well positioned to enhance our operations and seize new opportunities.”
Earlier this month, Singh collected INR520 million (USD6 million) after selling 11,538,462 million shares at an average price of INR45.34 (USD0.52) per share. The tranche represented over 35% of the 31.5 million personally held shares he said he was prepared to sell. That transaction saw Singh's personal shareholding in SpiceJet temporarily drop to 22%. Stock exchange records also show it was the largest open market sale of SpiceJet shares in over a decade.
In September 2024, SpiceJet raised INR30 billion (USD345 million) through a qualified institutional placement. The funds helped stabilise the airline's operations and shore up its balance sheet. In February, SpiceJet reported an after-tax profit of INR260 million (USD3 million) for the three months ended December 31, 2024. This compares to an INR3 billion (USD34.5 million) loss for the comparable 2023 period.
