SpiceJet on Thursday approved the sale and transfer of entire 58.46% of equity shares held by promoters Kalanidhi Maran and Kal Airways Pvt Ltd to Ajay Singh, at its board meeting.

The move paves the way for the exit of the Marans from the company's board. 

The board also approved increasing SpiceJet's authorised share capital to ₹2,000 crore with ₹1,500 crore made of equity shares of ₹10 each and 50 lakh non-convertible Cumulative Redeemable Preference Shares of ₹1,000 each.

No-frills airline SpiceJet

Kalanithi Maran and Kal Airways will be allotted up to 37.5 lakh non-convertible cumulative redeemable preference shares.

The board decided to create, issue, offer and allot equity shares/ warrants and/ or any instrument convertible into equity shares / Global Depository Receipts (GDRs)/ American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs.)

SpiceJet's registered office has been shifted to Delhi from Tamil Nadu, post the move.

The move seals the takeover of the beleaguered airline by Ajay Singh. While funding is inducted in a sequential order, the headwind faced by the company has not been entirely mitigated. SpiceJet is currently fighting to either retain its fleet or to induct new aircraft as part of Singh's bid to increase flying quotas and rationalise costs.

SpiceJet scrip was trading at ₹22.35, up by ₹0.55 or 2.52% at 11.37am.