SpiceJet plans to raise Rs2,250-cr through private placement
14 Dec 2023
The board of directors of SpiceJet has approved a proposal to raise around Rs2,250 crore, through the issuance of equity shares/equity warrants under a private placement basis to various investors.
SpiceJet plans to issue equity shares to financial institutions, foreign institutional investors (FIIs), high net-worth individuals (HNIs), and private investors on a preferential basis, subject to regulatory and other requisite approvals.
These shares/ warrants will be issued to various investors, including Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Ltd, Nexus Global Fund, Prabhudas Lilladher, and Resonance Opportunities Fund, the airline stated in a release.
The issue size has been fixed at a maximum of 32,08,05,972 equity shares and 13,00,00,000 warrants, at a price of Rs50 each to 64 entities, as per a regulatory filing.
"The proposed fund infusion will go a long way in enhancing the product presence and market reach of SpiceJet and will also provide a deep financial foundation. The capital raised will be instrumental in funding operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements," the release said.
SpiceJet chairman and managing director Ajay Singh said the funds will be used to strengthen SpiceJet's financial position and improve operational capabilities.
Singh had earlier announced plans to infuse Rs500 crore fresh capital into the airline.
The cash-strapped airline on Tuesday reported nearly halving its net loss to Rs428 crore in the July-September 2023-24 quarter compared to the year-ago period.
The airline registered a consolidated loss of Rs46.09 crore during the quarter against a loss of Rs829.98 crore in the year-ago period, according to the regulatory filing.
Total income for the quarter, however, was lower at Rs1,725.81 crore against Rs2,101.79 crore in the year-ago quarter.
Consolidated results include the financials of its nine subsidiaries as well.
SpiceJet opened 13 new routes in the September quarter. The airline reported a 5 percent share of the domestic market in October.
