 "SpiceJet deposits Rs 100 cr TDS for FY23, employees to get Form-16s soon")
SpiceJet has deposited tax deducted at source (TDS) of around Rs 100 crore for the financial year 2022-23 with the income tax department, its chairman and managing director, Ajay Singh, informed the employees on Wednesday, according to sources privy to the development.
Employees will soon receive their Form-16s on the internal portal of the airline, he stated. Form-16s are necessary for employees to file their income tax returns.
The beleaguered airline's shareholders earlier this month approved raising a total of Rs 2,241.5 crore through the issuance of equity and warrants. Rs 1,591.5 crore will be raised by issuing equity to 58 entities, and Rs 650 crore will be raised by issuing warrants on a preferential basis to five other entities. On January 26, the first tranche of Rs 744 crore (out of Rs 2,241.5 crore) was infused into the airline.
The 64 entities include financial institutions, foreign institutional investors, high-net-worth individuals, and private investors such as Elara India Opportunities Fund and Aries Opportunities Fund.
The airline has faced a cash crunch for several quarters and is dealing with multiple court cases regarding money owed to former owner Kalanithi Maran, financial services firm Credit Suisse, aircraft lessors, and engine lessors.
The airline has used various avenues to raise cash. In the financial year 2022-23, the airline raised Rs 449.8 crore under the central government's Emergency Credit Line Guarantee Scheme (ECLGS). The airline received an additional Rs 541.3 crore under the ECLGS in the financial year 2023-24, it announced on December 12.
In August 2023, Singh himself infused Rs 494.1 crore into the airline, and his entities were issued fresh equity and warrants in return. A few days later, aircraft lessor Carlyle Aviation Partners acquired a 5.91 per cent stake in the airline at Rs 48 per share. The lessor acquired the shares after converting its existing outstanding dues of $28.16 million.
The airline has posted annual losses since the financial year 2018-19. Last year, it posted a consolidated net loss of Rs 1,513 crore.