Mumbai-based business couple Harihara and Preeti Mahapatra to invest Rs 1,100 crore in SpiceJet
SpiceJet for 19% stake in the company. Aries Opportunities Fund will hold 3% while Elara Capital will hold 8%, after conversion of warrants, according to a detailed funding proposal reviewed by ET.
Last week, the cash-strapped airline announced that it got a lifeline as a clutch of funds and high net worth individuals will invest Rs 2,254 crore through the issue of up to 130 million convertible warrants and 320.8 million fresh equity shares.
Promoter Ajay Singh’s current shareholding in the airline will reduce from 56.49% to at least 38.55 % once the shareholders approve the issuance of equity and warrants.
37.9 % of Singh’s stake is pledged with various banks
Hariahara Mahapatra and his wife are promoters of Mahapatra Universal Limited- a Mumbai based group. The website of the company says that they are present in multiple sectors like real estate, infrastructure, consulting, consumer and retail.
In 2016, Mahapatra’s wife Preeti was fielded as an independent candidate in the Uttar Pradesh Panchayat election with backing from the Bharatiya Janata Party against Congress leader Kapil Sibal.
The airline said it will use the aforementioned Rs 2,241.5 crore to pay statutory obligations such as Tax Deducted at Source (TDS), Goods and Services Tax (GST), Provident Fund (PF), etc.; settle past dues with creditors; unground its grounded planes and acquire new aircraft; pay for aviation turbine fuel; pay salaries to employees; and for general corporate purposes.
Singh said that the investment will help the airline to induct fresh capacity and reduce liabilities, thereby reducing cost of capital.
“It helps us to induct fresh capacity, settle some liabilities which we accrued during Covid. This will also give confidence to
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