SpiceJet

Inception
Earlier known as Royal Airways, SpiceJet is a reincarnation of ModiLuft, one of India’s
first post-deregulation airlines, launched in 1994 and shut down in 1996.

SpiceJet was launched in May, 2005, and is being promoted by Ajay Singh and the
Kansagra family.

Initial paid up capital

In 2005, when SPICEJET was launched the initial paid up capital was 184.34 crore.

Who started it?

Established as air taxi provider ModiLuft in 1994, the company was acquired by Indian
entrepreneur Ajay Singh in 2004 and re-christened as SpiceJet.

Is there a holding company?

No

How has capital progressed? (Rights Issue/Public issue/ Buy back)

Dividend Record (Consistency/ interruptions)

No dividends being paid

Relations among promoters (Harmonious/ Quarrelling)

Kalanithi Maran of Sun Group, the former promoter of SpiceJet, has dragged current
promoter Ajay Singh and the airline to the Delhi High Court over non-issuance of convertible
warrants that formed part of the deal under which he passed on ownership to Singh in
January last year.

In January 2015, Maran and his KAL Airways transferred their entire chunk of 350.4 million
equity shares, equivalent to a 58.46% stake, to Singh. Under the terms of the deal, Maran
and KAL were to be allotted 189 million convertible warrants in return for Rs 330 crore
handed to the airline for payment of taxes and dues.

Maran paid Rs 680 crore in total to Singh, a co-founder of the airline, when he passed on
ownership, said three persons with direct knowledge of the matter. “The warrants were
supposed to be allotted to us. The money was to be used to pay tax liabilities. Both haven’t
happened, which is why we went to court two days ago,” said one of the persons, who is
close to Maran.

Under the terms of the deal, Singh became owner of SpiceJet by paying the Marans just Rs 2
but assumed the airline's li ..

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