Budget airline SpiceJet has announced that it would issue convertible warrants to its promoters to raise funds to pursue its expansion plans.

In a regulatory filing, SpiceJet said that convertible debenture or warrants could be converted to around 5.22 crore equity shares. The company is yet to disclose the conversion price. At Wednesday's closing price of Rs 37.40 apiece on the Bombay Stock Exchange (BSE), the shares will garner around Rs 200 crore for the company.

Sun Group, which promotes the airline, had previously announced that the airline required capital for expansion and that it would explore options such as funding from existing shareholders and raising debt.

When asked about any plan for a stake sale, Sun Group CFO S L Narayanan said that no such plan was on cards for the time being.

Speaking on the topic, Narayanan said, "We certainly need funds for fleet expansion and whenever there is an attractive opportunity (for partial stake sale), we will definitely look at it, but there is nothing on cards as of now."

Shares in SpiceJet gained 7 per cent to close at Rs 37.40 apiece on the Bombay Stock Exchange (BSE).

SpiceJet, which as a fleet of 36 Boeing and 12 Bombardier planes, operates more than 300 flights daily to 38 domestic cities and 4 international destinations.