Sebi Exempts Spice Healthcare from Open Offer for SpiceJet

New Delhi, Sep 14 (PTI) Markets regulator Sebi has exempted Spice Healthcare Pvt Ltd from making an open offer to SpiceJet shareholders in relation to acquisition of additional shares in the airline.

On conversion of warrants that were issued to it, Spice Healthcare, a promoter group entity, would be acquiring an additional 13,14,08,514 equity shares in the airline.

In this regard, SpiceJet had sought an exemption from Sebi with respect to making an open offer for the shareholders of the airline.

The Securities and Exchange Board of India (Sebi), through an order on Friday, has given the exemption from making the open offer to Spice Healthcare subject to certain conditions, the airline said in a filing to BSE on Saturday.

Post conversion of the warrants, Spice Healthcare will have an additional 13.74 per cent stake in the airline and that would trigger the open offer requirement under Sebi norms.

The watchdog has given the exemption subject to the condition that the shares acquired by the entity on exercise of the warrants will be locked in for an additional 6 months and the total period will be 24 months.

Generally, the lock-in period for such conversions is 18 month.

As per the Sebi order, which has been submitted to the BSE by the airline, Spice Healthcare's additional voting rights from the conversion of warrants into shares will be frozen for a certain period of time.

In another filing, SpiceJet said its board has approved the appointment of Sonum Gayatri Malhotra as an Additional Director designated as an Independent Director.

Separately, the board of Spice Xpress and Logistics Pvt Ltd, a subsidiary of SpiceJet, has cleared the appointment of Manoj Kumar as an Additional Director designated as an Independent Director of the company, as per a filing.

Both appointments are with effect from Saturday.

Struggling SpiceJet is in the process of raising funds to boost its financial position and meet various obligations.