SpiceJet to Sell Stake: Ajay Singh May Offload 10% to Raise Funds
By Rediff Money Desk, New Delhi Sep 08, 2024 17:43
SpiceJet promoter Ajay Singh plans to sell over 10% stake in the airline to raise funds, aiming to address financial challenges and bring grounded aircraft back in operation. The funding round is expected to close by the end of September.
New Delhi, Sep 8 (PTI) SpiceJet promoter and chairman Ajay Singh may offload more than 10 per cent stake in the struggling carrier as part of the latest funding round that is expected to close by the end of September, according to sources.
The budget carrier -- which is grappling with multiple woes, including financial challenges, legal battles and grounding of aircraft -- is looking to raise money that will help it meet various obligations.
One of the sources said that Singh could offload up to a 15 per cent stake in the airline if certain conditions are conducive.
Singh, who is the Chairman and Managing Director, would be offloading around 10 per cent shareholding in the airline and the quantum could go up, the second source said.
For the proposed QIP (Qualified Institutional Placement), there is already a commitment for up to Rs 2,000 crore and the airline is in discussions with potential investors. Meetings with investors have been held in India and overseas, the sources in the know said.
There was no official comment from SpiceJet.
The funding round is expected to be completed by the end of September.
At the end of June 2024, the promoter group had a little over 47 per cent stake in the carrier, as per data available on the BSE.
SpiceJet, which had a fleet of 74 planes in 2019, is currently operating around 20 aircraft.
On Friday, the airline said it plans to mop up Rs 3,200 crore through QIP, warrants and capital infusion by the promoter, the airline said in a presentation on Friday.
The funds will be utilised to take back the grounded fleet in operations, liability settlement, new fleet induction and other general purposes.
"Spicejet plans to raise Rs 2,500 crore through QIP and Rs 736 crore through previous warrants and promoter infusion, the airline said in an investor presentation," it had said in the presentation to investors.
In January, SpiceJet could raise only Rs 1,060 crore through preferential issues against its Rs 2,250 crore funding plan that was announced in December 2023.
The budget carrier -- which is grappling with multiple woes, including financial challenges, legal battles and grounding of aircraft -- is looking to raise money that will help it meet various obligations.
One of the sources said that Singh could offload up to a 15 per cent stake in the airline if certain conditions are conducive.
Singh, who is the Chairman and Managing Director, would be offloading around 10 per cent shareholding in the airline and the quantum could go up, the second source said.
For the proposed QIP (Qualified Institutional Placement), there is already a commitment for up to Rs 2,000 crore and the airline is in discussions with potential investors. Meetings with investors have been held in India and overseas, the sources in the know said.
There was no official comment from SpiceJet.
The funding round is expected to be completed by the end of September.
At the end of June 2024, the promoter group had a little over 47 per cent stake in the carrier, as per data available on the BSE.
SpiceJet, which had a fleet of 74 planes in 2019, is currently operating around 20 aircraft.
On Friday, the airline said it plans to mop up Rs 3,200 crore through QIP, warrants and capital infusion by the promoter, the airline said in a presentation on Friday.
The funds will be utilised to take back the grounded fleet in operations, liability settlement, new fleet induction and other general purposes.
"Spicejet plans to raise Rs 2,500 crore through QIP and Rs 736 crore through previous warrants and promoter infusion, the airline said in an investor presentation," it had said in the presentation to investors.
In January, SpiceJet could raise only Rs 1,060 crore through preferential issues against its Rs 2,250 crore funding plan that was announced in December 2023.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Srestha Finvest
- 0.89 ( 0.00)
- 69758135
- Standard Capital
- 1.26 ( -16.00)
- 55792425
- GTL Infrastructure
- 2.37 (+ 4.87)
- 50169700
- Vodafone Idea L
- 9.18 ( -1.50)
- 27130818
- Jaiprakash Power Ven
- 22.33 ( -2.45)
- 21183721
MORE NEWS
Jio Urges Minister's Intervention on Satcom...
Reliance Jio seeks Union Minister Scindia's intervention to ensure a level-playing...
India Bans Pocket Lighter Parts Import: Focus...
India restricts imports of pocket lighter parts, aiming to boost local manufacturing...
CCPA Orders Ola to Offer Refunds, Ride Receipts
India's consumer watchdog CCPA has ordered ride-hailing platform Ola to offer refund...