SpiceJet to Raise Rs 2,250 Cr Amid Financial Woes

New Delhi, Dec 12 (PTI) Crisis-hit SpiceJet on Tuesday announced it will raise more than Rs 2,250 crore through the issuance of equity shares to a raft of investors, 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 Rs 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 Rs 2,250 crore (around USD 270 million) will be raised through the issuance of equity shares to financial institutions, foreign institutional investors (FIIs), high Networth 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, Resonance Opportunities Fund.

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 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.

Earlier, Singh had announced that he would infuse Rs 500 crore fresh capital into the carrier. Out of that total amount, the company has already received Rs 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.

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 Rs 58.04 apiece 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.