SpiceJet flies 3% on revoking pledged shares

Low cost carrier SpiceJet gained as much as 3.4 percent on Tuesday after the company said more than 1.71 crore shares pledged by one of its promoter, Kal Airways, have been released.

Kal Airways, one of the two promoter entities of the carrier, held 15.65 crore or 32.32 per cent stake in SpiceJet as of September quarter.

Meanwhile, the company's shareholders last week approved proposals to raise Rs 145 crore through issue of debentures and warrants, on preferential basis, to its promoter Kalanithi Maran.

About Rs 130 crore would be raised through issue of 14 per cent unsecured compulsorily convertible debentures. Further, by way of allotting warrants with an option to apply for equity shares, the carrier would mop up Rs 15 crore.

In November, the board had approved issuance of convertible debenture and/or warrants convertible into up to a maximum of 52.177 million equity shares to the promoter of the company on preferential basis.

At 10:32 hours IST, the stock gained 2.39 percent at Rs 45.05 on the Bombay Stock Exchange.

(With inputs from PTI)