Budget carrier SpiceJet’s board on Tuesday approved a fundraising plan of over Rs 2,250 crore (about $270 million) through the issuance of equity shares. Spicejet also posted a net loss of Rs 428 crore for the quarter ended September 2023. In the year-ago period, the net loss stood at Rs 835 crore.
The fundraising is aimed at fortifying the airline’s financial strength and accelerating its growth trajectory.
“The Board of Directors of SpiceJet Ltd. met today (Tuesday) and approved the raising of fresh capital of over INR 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,” the airline said in a statement.
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 Rs 2,250 crore, Spicejet stated.
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, it said.
Ajay Singh, chairman and managing director of SpiceJet, said, “This is a significant fundraise 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.”
On Monday, Spicejet also said it will soon list its shares on the National Stock Exchange.
Shares of Spicejet on Tuesday fell by Rs 2.97 or 4.90 per cent to close at Rs 57.6 apiece on the BSE.
Spicejet’s shares have surged over 30 per cent in the past one month, compared with the Sensex’s rise of more than 6 per cent.
