Ajay Singh takes over ownership of SpiceJet

The Board of Directors of SpiceJet Ltd at their meeting held last night had approved the sale and transfer the ownership of the airline company to co-founder Ajay Singh. With this SpiceJet has legally changed hands though Mr. Singh who is backed by financial investors has been running the airline for nearly a month.

The share sale and purchase agreement between the promoters and Mr. Singh was signed on Thursday. Kalanithi Maran of Sun group and his company Kal Airways have sold all their shares amounting to 58.46 per cent stake in the airline.The board had also decided to increase the authorize capital of the company to Rs 2000 crore.The Ministry of Civil Aviation had recently cleared the proposal of the Marans for change in ownership and management control.

With the change in ownership Mr. Maran, Mrs. Kavery Maran and Mr. S Natrajhen have resigned from the board with immediate effect. The registered office of the airline has been shifted from Tamil Nadu to Delhi.

Mr. Ajay Singh who had co founded the airline in 2005 is pumping in Rs 1500 crore along with financial investors to revive the fortune of the low cost airline that had plunged into severe financial crisis in the past few months.

Source:Thehindu

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