SpiceJet is in a bind and is in the process of raising funds to improve its financial position and meet various obligations. | Photo: Shutterstock
Markets regulator Sebi has exempted Spice Healthcare Pvt Ltd from making an open offer to SpiceJet shareholders in connection with the acquisition of additional shares in the airline.
With the conversion of the warrants issued to it, Spice Healthcare, an entity of the promoter group, would acquire an additional 13,140,8514 equity shares of the airline.
In this regard, SpiceJet had sought an exemption from Sebi regarding conduct of an open offer to the shareholders of the airline.
The Securities and Exchange Board of India (Sebi), through an order on Friday, has granted exemption from making the open offer to Spice Healthcare subject to certain conditions, the airline said in a filing to BSE on Saturday.
Following conversion of warrants, Spice Healthcare will hold an additional 13.74 per cent stake in the airline and that would trigger the open offer requirement under Sebi norms.
The regulatory body has granted the exemption on the condition that the shares acquired by the entity in the exercise of the warrants will be blocked for an additional 6 months and the total period will be 24 months.
The lock-in period for such conversions is generally 18 months.
As per Sebi’s order, which the airline filed with the BSE, Spice Healthcare’s additional voting rights arising from conversion of warrants into shares will be frozen for a specified period of time.
In a separate filing, SpiceJet said its board of directors has approved the appointment of Sonum Gayatri Malhotra as Additional Director designated as Independent Director.
Separately, the board of directors of Spice Xpress and Logistics Pvt Ltd, a subsidiary of SpiceJet, has approved the appointment of Manoj Kumar as Additional Director designated as Independent Director of the company, according to a filing.
Both appointments will take effect on Saturday.
SpiceJet is in distress and is in the process of raising funds to improve its financial position and meet various obligations.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 14, 2024 | 10:43 PM IS
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