 "SpiceJet to raise $360 mn by selling securities to restore normalcy")
India's SpiceJet said on Tuesday it plans to raise Rs 3000 crore (around $360 million) by selling securities, including shares, marking the troubled budget carrier's latest attempt to shore up funds to restore full operations.
The company will issue shares to institutional investors, it said in an exchange filing, without disclosing the price at which they would be sold.
WHY IT MATTERS
SpiceJet has been scrambling to raise funds amid a string of quarterly losses, compounded by some lessors taking the airline to court to settle unpaid dues and requesting the country's aviation regulator to de-register their planes.
As of March-end, SpiceJet had cash and cash equivalents of Rs 187 crore, while its cash from operational activities was a negative Rs 613 crore.
KEY CONTEXT
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Most top Indian carriers, from IndiGo to those under the Air India group, have inducted newer jets over the last year to cater to booming demand in one of the world's fastest-growing aviation markets.
SpiceJet, however, has struggled to even return grounded jets to the sky, losing market share in the process, weighed down by its legal and financial troubles.
At 4.2 per cent, SpiceJet's market share in the June quarter was below that of newest entrant Akasa Air's 4.7 per cent for only the second-time since the latter began ops in mid-2022, data from India's aviation regulator showed.
MARKET REACTION
SpiceJet shares jumped as much as 7 per cent to 58.65 rupees after the announcement. Its shares are down about 4 per cent so far in 2024, compared to a 44 per cent jump in market leader IndiGo's shares.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)