According to Mills, there will be an infusion of nearly Rs 130 crore along with stake increase. For this convertible preference shares will be issued at a premium of 50% to the current share price of Rs 24.
Maran bought 37.7% stake of Spice for the cost of Rs 750 crore in 2010. If the promoter intends to increase the stake in the company then it shows the confidence in the low cost business model in the aviation industry. Mills also said that the company is expanding its network fast in smaller cities across India.
The share price of SpiceJet has fallen massively after Maran's brother Dayanidhi Maran was accused by the CBI for favoring a specific company during his tenure as the telecommunication minister between 2004-2007.
SpiceJet had a net profit of Rs 52.22 crore in Q1 2010 but for the period Q1 2011 the company has declared a net loss of Rs 71.96. Net sales went up by 31.8% to 932.85 crore.
Head-quartered at Delhi-based airline operates 202 fights daily to 21 Indian cities and two international destinations.