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NEW DELHI: Struggling-to-survive SpiceJet has finally got a fresh lifeline of over Rs 2,250 crore from new investors such as Elara India Opportunities Fund, Aries Opportunities Fund, Nexus Global Fund and Prabhudas Lilladher.
The move is expected to help ease the financialstress on Ajay Singh-promoted low-cost carrier, which has been unable to pay employees or even deposit their statutory dues of TDS and PF.It is severely short of planes as it has not paid stakeholders, including engine and aircraft lessors on time for several months, resulting in regular cancellation of flights. As a result, the on-time performance of a truncated schedule it has been operating has been badly impacted.
“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… 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,” Singh said in a statement after the airline’s board on Tuesday cleared the fund-raising.
The proposed preferential issue is for investors for issuance of shares and equity warrants aggregating to over Rs 2,250 crore, the airline said in a statement. “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.
SpiceJet on Tuesday declared its financial result. The airline says it narrowed Q2 FY24 loss to Rs 428 crore from Rs 835 crore in the same period last fiscal. The airline’s scrip closed 4% down at Rs 58 on Tuesday.
The move is expected to help ease the financialstress on Ajay Singh-promoted low-cost carrier, which has been unable to pay employees or even deposit their statutory dues of TDS and PF.It is severely short of planes as it has not paid stakeholders, including engine and aircraft lessors on time for several months, resulting in regular cancellation of flights. As a result, the on-time performance of a truncated schedule it has been operating has been badly impacted.
“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… 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,” Singh said in a statement after the airline’s board on Tuesday cleared the fund-raising.
The proposed preferential issue is for investors for issuance of shares and equity warrants aggregating to over Rs 2,250 crore, the airline said in a statement. “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.
SpiceJet on Tuesday declared its financial result. The airline says it narrowed Q2 FY24 loss to Rs 428 crore from Rs 835 crore in the same period last fiscal. The airline’s scrip closed 4% down at Rs 58 on Tuesday.
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