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SpiceJet deposits Rs329 crore in share transfer dispute with Kalanithi Maran

LiveMint logoLiveMint 17-08-2017 Tarun Shukla

New Delhi: SpiceJet Ltd has furnished a bank guarantee of Rs329 crore to the registrar general of the Delhi high court, in compliance with a Supreme Court order last month, the airline said in a filing to the BSE.

“We have used internal accruals for this. The remaining amount will be deposited soon,” said a SpiceJet official who did not wished to be named.

The court asked the airline to furnish a bank guarantee of Rs329 crore and a deposit of Rs250 crore in a share transfer dispute with Kalanithi Maran and his KAL Airways.

The case relates to a dispute arising out of non-issuance of warrants in favour of KAL Airways’s non-executive chairperson Kalanithi Maran, after transfer of ownership to Ajay Singh, the current controlling shareholder of SpiceJet.

Maran and KAL Airways had transferred their entire 58.46% stake in SpiceJet, amounting to 350.4 million shares, to its co-founder Singh in February 2015, leading to a change in ownership of the airline.

Under the share purchase agreement, KAL Airways and Maran were to receive redeemable warrants in return for the Rs690 crore they spent on SpiceJet towards operating costs and debt payments.

Shares of SpiceJet were up 3.41% on the BSE at Rs131.80 at the close of trading on Thursday, while the Sensex edged up 0.08% to 31,795.46 points.

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