Aviation News

To get Rs 2,250 crore from new investors, ET Infra


NEW DELHI: Struggling to survive SpiceJet may have finally got a lifeline of over Rs 2,250 crore from new investors. The airline’s board met Tuesday and approved raising fresh capital to this amount. Due to a severe financial crunch, SpiceJet has not been able to pay employees, statutory dues and other stakeholders on time for several months now and the on time performance of the truncated schedule it has been operating has been badly impacted. The airline says the funds will help it resolve those issues and grow.

“The proposed preferential issues comprise of investors like Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher, Resonance Opportunities Fund and many more for issuance of equity shares and equity warrants aggregating to over ₹ 2,250 crore,” the airline said in a statement.

SpiceJet CMD Ajay Singh said: “This is a significant fund raise and it is designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth in the dynamic aviation sector. We are confident that this capital raise will help us achieve our goal of building a world class airline in India. I personally thank all our stakeholders, all those who work for SpiceJet and all those who work with SpiceJet and who have patiently waited for this day. They have allowed us the time and opportunity to overcome a difficult phase in our history, and we are grateful to them.”Meanwhile the airline says it has reduced its Q2 FY 2024 loss to ₹ 428 crore, from ₹ 835 crore in same period last fiscal.

“The board of directors of SpiceJet met (Dec 12) and approved the raising of fresh capital of over Rs 2,250 crore (approximately $270 million) through the issuance of equity shares to financial institutions, FIIs, HNIs and private investors aimed at fortifying the airline’s financial strength and accelerating its growth trajectory,” it added

“The Board, in a unanimous decision, considered and approved issuance of equity shares/equity warrants under private placement basis, subject to shareholder and regulatory approvals as may be required.”

  • Published On Dec 13, 2023 at 12:42 PM IST

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