SpiceJet shares plunged over 10 per cent today following the Delhi High Court's order on Friday asking the budget carrier to pass a board resolution for issuing stock warrants to the airline's former owner Sun group Managing Director Kalanithi Maran and his KAL Airways.
The stock warrants are part of the sale purchase agreement of 2015, which led to change in ownership of SpiceJet. Under the agreement, Mr Maran and his KAL Airways transferred their entire 350,428,758 equity shares (58.46 per cent stake) in SpiceJet, to current owner Ajay Singh.
The court's order came on a petition filed by Mr Maran and his KAL Airways, who alleged that despite giving around Rs 579 crore to SpiceJet, the carrier failed to issue them the warrants.
As per the deal, Mr Maran and his KAL Airways were to receive the redeemable warrants in return for around Rs 679 crore that they were to give to the airline towards operating costs and debt payment, the petition claimed.
SpiceJet assured the court that it will maintain status quo and not transfer shares to any third party till the court passes an order. The court is expected to hear the case today.
SpiceJet shares closed 4.5 per cent lower at Rs 59 as compared to 0.4 per cent gain in the broader Nifty.
SpiceJet shares plunged over 10 per cent today following the Delhi High Court's order on Friday asking the budget carrier to pass a board resolution for issuing stock warrants to the airline's former owner Sun group Managing Director Kalanithi Maran and his KAL Airways.
The stock warrants are part of the sale purchase agreement of 2015, which led to change in ownership of SpiceJet. Under the agreement, Mr Maran and his KAL Airways transferred their entire 350,428,758 equity shares (58.46 per cent stake) in SpiceJet, to current owner Ajay Singh.
The court's order came on a petition filed by Mr Maran and his KAL Airways, who alleged that despite giving around Rs 579 crore to SpiceJet, the carrier failed to issue them the warrants.
As per the deal, Mr Maran and his KAL Airways were to receive the redeemable warrants in return for around Rs 679 crore that they were to give to the airline towards operating costs and debt payment, the petition claimed.
SpiceJet assured the court that it will maintain status quo and not transfer shares to any third party till the court passes an order. The court is expected to hear the case today.
SpiceJet shares closed 4.5 per cent lower at Rs 59 as compared to 0.4 per cent gain in the broader Nifty.
SpiceJet shares plunged over 10 per cent today following the Delhi High Court's order on Friday asking the budget carrier to pass a board resolution for issuing stock warrants to the airline's former owner Sun group Managing Director Kalanithi Maran and his KAL Airways.
The stock warrants are part of the sale purchase agreement of 2015, which led to change in ownership of SpiceJet. Under the agreement, Mr Maran and his KAL Airways transferred their entire 350,428,758 equity shares (58.46 per cent stake) in SpiceJet, to current owner Ajay Singh.
The court's order came on a petition filed by Mr Maran and his KAL Airways, who alleged that despite giving around Rs 579 crore to SpiceJet, the carrier failed to issue them the warrants.
As per the deal, Mr Maran and his KAL Airways were to receive the redeemable warrants in return for around Rs 679 crore that they were to give to the airline towards operating costs and debt payment, the petition claimed.
SpiceJet assured the court that it will maintain status quo and not transfer shares to any third party till the court passes an order. The court is expected to hear the case today.
SpiceJet shares closed 4.5 per cent lower at Rs 59 as compared to 0.4 per cent gain in the broader Nifty.
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