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SpiceJet board approves fundraising of INR 2,250 through issues of equity shares, warrants

Crisis-hit SpiceJet on Tuesday announced that it will raise more than INR 2,250 crore through the issuance of shares and warrants to 64 entities, including financial institutions and FIIs, a move that will help the carrier to navigate the financial turbulence.

On Tuesday, the no-frills airline also reported nearly halving its net loss to INR 428 crore in the latest September quarter compared to the year-ago period.

The board of SpiceJet has approved the issuance of equity shares/equity warrants under a private placement basis to various investors, subject to requisite approvals.

More than INR 2,250 crore (around USD 270 million) will be raised through the issuance of equity shares to financial institutions, Foreign Institutional Investors (FIIs), high net-worth individuals (HNIs) and private investors.

In a release, the airline said the preferential issuance of securities will be made to various investors, including Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Ltd, Nexus Global Fund, Prabhudas Lilladher, and Resonance Opportunities Fund.

A total of up to 32,08,05,972 equity shares and 13,00,00,000 warrants will be issued at an issue price of ₹50 each to 64 entities, as per a regulatory filing.

Details about the quantum of stake that the investors will have post-fund infusion could not be immediately ascertained.

“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 this is a significant fundraising, 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.

Earlier, Singh had announced that he would infuse INR 500 crore fresh capital into the carrier. Out of that total amount, the company has already received INR 200 crore, the release said on Tuesday.

On Monday, the airline’s board met to discuss the fundraising plan, but the meeting was adjourned for Tuesday as all the agenda items could not be taken up.

On a consolidated basis, the airline recorded a total comprehensive loss of INR 446.09 crore in the latest September quarter.

It stood at INR 829.98 crore in the year-ago period, according to the regulatory filing.

Its total income was INR 1,725.81 crore, lower than INR 2,101.79 crore a year ago.

The consolidated results include the financials of its nine subsidiaries.

The airline is also planning to list its securities on the National Stock Exchange.

Currently, it is listed on the BSE, where the scrip declined 4.18 per cent to close at INR 58.04 a piece on Tuesday.

The airline has been grappling with multiple headwinds, including issues with aircraft lessors and financial woes.

In October, SpiceJet had a domestic market share of 5 per cent and carried 6.28 lakh passengers. The airline launched 13 new routes in the September quarter.

 

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