2:11 PM
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SpiceJet Chairman Kalanithi Maran pledged an additional 43.9 million shares to raise `200 crore to fund the airlines expansion. In a filing to the Bombay Stock Exchange, SpiceJet said Kal Airways, a company owned by Maran, has pledged over 43.9 million shares on July 13, taking the total number of shares pledged by the entity to over 134.8 million. The total pledged shares account for 86.17 per cent of its holding in the Delhi-based carrier and 33.27 per cent of the outstanding shares of the company. Kal Airways holds over 156.5 million shares in SpiceJet.
Confirming the development SpiceJet CEO Neil Mills said: “The airlines chairman has pledged his shares to support short-term borrowings.” The move comes at a time when Sun TV and the Marans are under scrutiny for financial irregularities. Mills said the airline has raised debt of `200 crore from a local bank to fund its expansion. The airline plans to set up a base in Hyderabad and start a regional service using Bombardier Q400 planes. However, the airline is still to receive an approval from the Reserve Bank of India for $270 million to fund the aircraft order. The airline has also sought DGCA approval to launch flights to ten more international destinations.
Shares of Kalanithi Maranpromoted SpiceJet has more than halved this year on the bourses. The scrip, which quoted at around `80 in December 2010, is now trading at `36.15 a share. Maran, with his firm Kal Airways, holds a 38.16 per cent stake in SpiceJet. He took over as the companys chairman in November last year. Spicejets stock took a beating after Marans brother Dayanidhi Maran was accused by the Central Bureau of Investigation of favouring atelecom company during his tenure as telecom minister between 2004 and 2007. Shares of Kalanithi Maran-promoted Spicejet has more than halved this year on the bourses.