SpiceJet board to consider raising capital on July 12 meeting

Low-cost carrier SpiceJet's board will consider raising fresh capital on July 12 during the meeting of the board of directors.

It said in an exchange filing on Sunday that the meeting of the board of directors “will be held on July 12, 2023 (Wednesday) to consider and approve, inter-alia, options for raising fresh capital through issue of equity shares and/or convertible securities on preferential basis, in accordance with the relevant provisions of applicable laws and subject to approval of the shareholders of the Company and receipt of applicable regulatory approvals, as may be required”.

This comes after a Supreme Court order on Friday refused to extend the deadline for payment of an arbitral award of Rs 578 crore related to a share-transfer dispute to media baron Kalanidhi Maran and his Kal Airways.

A bench of Chief Justice DY Chandrachud and Justice PS Narasimha rejected SpiceJet’s submissions and refused to extend the time, adding that the entire award has now become executable.

''The battery of lawyers is involved in all this and you know, the idea is just to delay complying with the orders of the court. I personally will not approve this... The writ of the court has to be complied with and now, they (the Delhi High Court) will execute the award," the CJI said.

Maran and Kal Airways’ counsel said that nothing has been paid to them after the apex court ordered them to pay Rs 75 crore as interest.

SpiceJet argued that Rs 75 crore is not a small amount, to which the court stated that the parties involved aren’t small either. “These are all luxurious litigations. No further extension of time can be granted and the award becomes executable," it said.

The Delhi High Court, on June 1, had also directed SpiceJet to deposit Rs 75 crore towards interest, as well as the bank guarantee of Rs 270 crore furnished by SpiceJet to be encashed.

Shares of SpiceJet were last seen trading 2.03 per cent higher, at Rs 30.10, today over their previous close of Rs 29.50. Turnover on the counter came at Rs 2.87 crore, commanding a market capitalisation (m-cap) of Rs 1,811.56 crore.

Also read: SC directs SpiceJet to pay entire arbitral amount to Kalanithi Maran; stock falls 3.5%