Elara India Opportunities Fund (Elara) has picked up a stake in budget carrier SpiceJet following the conversion of warrants of the airline issued in January.

The foreign fund, previously in the news for its alleged links to the Gautam Adani-group, has been allotted 34.6 lakh shares at an issue price of Rs 50 apiece consequent upon the conversion of an equal number of warrants.

The warrants were allotted to the fund on January 25, 2024, on a preferential basis.

Based on SpiceJet’s shareholding for the period ending February 21, 2024, the shares account for around 0.44 per cent of the carrier’s equity.

It is not clear if more warrants will be converted into shares.

Elara had received 8.3 crore warrants in January, while 1 crore warrants were allotted to Silver Stallion Ltd.

The latest allotment to Elara comes days after Abu Dhabi’s sovereign wealth fund ADIA acquired shares of the airline from the open market.

While specific details of the purchase were not disclosed by the carrier, ADIA had reportedly started buying the shares in February.

Elara’s name was figured in the damaging Hindenburg report on the Adani group.

The US-based short seller which had accused the domestic conglomerate of stock manipulation and fraud had cited a former trader who allegedly said that the structure of the fund was intentionally designed to conceal their beneficial ownership.

Elara has a 1.97 per cent stake (2.19 crore shares) in Adani Energy Solutions Ltd and a 1.52 per cent stake (1.67 crore shares) in Adani Total Gas.

The SpiceJet share on Tuesday slumped nearly 9 per cent to Rs 55.90 on the BSE after the airline said that several members of its commercial team have resigned with immediate effect, as part of a strategic restructuring.

“As part of SpiceJet’s strategic restructuring, several members of the commercial team have left the company with immediate effect,” an airline spokesperson said.