Sebi Exempts Spice Healthcare from Open Offer Requirement for SpiceJet

The Securities and Exchange Board of India (Sebi) has granted Spice Healthcare Pvt Ltd an exemption from making an open offer to SpiceJet shareholders. This exemption is related to the acquisition of additional shares in the airline. Spice Healthcare, a promoter group entity, will acquire 13,14,08,514 equity shares upon converting warrants issued to it.

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SpiceJet Seeks Exemption

SpiceJet had requested Sebi to exempt it from making an open offer for its shareholders. The regulator approved this request on Friday, subject to specific conditions. The airline disclosed this information in a filing to the BSE on Saturday.

Upon conversion of the warrants, Spice Healthcare will gain an additional 13.74 per cent stake in SpiceJet. This increase would typically necessitate an open offer under Sebi regulations. However, Sebi's exemption comes with the condition that the acquired shares will be locked in for an extra six months, totalling 24 months.

Lock-In Period and Voting Rights

The usual lock-in period for such conversions is 18 months. According to Sebi's order submitted to the BSE by SpiceJet, the additional voting rights from these converted shares will be frozen for a specified period.

In another development, SpiceJet's board has approved Sonum Gayatri Malhotra's appointment as an Additional Director designated as an Independent Director. This decision was made effective from Saturday.

Appointments at Subsidiary

Separately, the board of Spice Xpress and Logistics Pvt Ltd, a subsidiary of SpiceJet, has appointed Manoj Kumar as an Additional Director designated as an Independent Director. This appointment also took effect on Saturday.

Struggling financially, SpiceJet is currently raising funds to improve its financial health and meet various obligations.