India's SpiceJet is issuing new shares to its main shareholder, in a move that will help the low-cost carrier to bolster its balance sheet in the coming months.
The airline says that its board has approved a proposal to issue debentures or warrants, which can be convertible up to a maximum of 52.2 million equity shares, to its promoter Kalanithi Maran. The price will be fixed at a later date, it adds.
Maran, the owner of the Sun Group conglomerate, has an individual stake of 48.59% in SpiceJet via his KAL Airways vehicle.
The airline has been studying various options to raise funds for its fleet expansion plans, according to various Indian news reports.
SpiceJet has 30 Boeing 737-800 narrowbody aircraft and three Bombardier Q400 turboprop aircraft on order, according to Flightglobal Pro data. Its fleet comprises 30 737-800s, six 737-900s and 12 Q400s.