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SpiceJet has raised Rs 3,000 crore through sale of shares to qualified institutional buyers, providing a much-needed tailwind for the struggling airline. Foreign entities, including Societe Generale - ODI, Goldman Sachs (Singapore) Pte - ODI, Nomura Singapore Ltd ODI and Discovery Global Opportunity (Mauritius) Ltd are among the investors who have been allotted shares under the airline's Qualified Institutional Placement (QIP) that was oversubscribed. The airline's fundraising committee, on September 20, approved the allotment of more than 48.70 crore shares at a price of Rs 61.60 apiece to the more than 80 QIP participants, according to a regulatory filing. The total amount for which the securities have been issued is nearly Rs 3,000 crore. "Pursuant to the allotment of equity shares in the Issue, the paid-up equity share capital of the company stands increased from Rs 7,94,67,27,170 consisting of 79,46,72,717 equity shares to Rs 12,81,68,57,030 consisting of 1,28,16,85,703 equity
SpiceJet on Thursday said its shareholders have approved the proposal to raise up to Rs 3,000 crore through issuance of securities. The no-frills 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. In a regulatory filing on Friday, the airline said shareholders have given their nod for the special resolution for raising funds of up to Rs 3,000 crore. The funds are proposed to be raised through Qualified Institutional Placement (QIP) and other options. SpiceJet, which had a fleet of 74 planes in 2019, is currently operating around 20 aircraft. Shares of the airline rose 8 per cent to close at Rs 71.66 on the BSE.
Cash-strapped domestic carrier Spicejet plans to raise over Rs 3,200 crore through various debt and equity instruments and capital infusion by the promoter, the airline said in a corporate presentation. The funds will be utilised in fleet ungrounding, liability settlement, new fleet induction and other general purposes, SpiceJet said in the presentation. "Spicejet plans to raise Rs 2,500 crore through QIP and Rs 736 crore through Previous Warrants and promoter infusion," it said. The proposed fundraising is subject to shareholders' approval, it added.
With more than Rs 900 crore funding coming in this month, SpiceJet will focus on upgradation of its fleet and cost-cutting measures, as the no-frills airline works on ways to come out of turbulent times. In an internal note to the senior staff on Monday, the airline said it now has a substantial bank balance of more than Rs 900 crore, including Rs 160 crore received as an instalment under the government's Emergency Credit Line Guarantee Scheme (ECLGS). The carrier, which had been facing multiple headwinds in recent months, has so far received around Rs 1,000 crore under the ECLGS. The latest instalment came recently after its Chairman and Managing Director Ajay Singh infused funds into the airline, according to an official in the know. Singh, who has been helming the no-frills carrier, has so far put in Rs 200 crore out of the Rs 500 crore fund infusion that he had announced last year. The official said the airline has garnered a total of more than Rs 1,100 crore funds in three ..
SpiceJet, which has been facing multiple headwinds, on Friday said it has received Rs 744 crore as the first tranche of funds being raised through allotment of securities on a preferential basis. On December 12, the airline had said it would raise fresh capital of Rs 2,250 crore through issuance of securities. According to a release, on January 25, the company's board of directors approved the allotment of 5.55 crore equity shares on a preferential basis to 54 subscribers. The airline has allotted shares and warrants totalling Rs 744 crore on a preferential basis in the first tranche. The board has also approved the allotment of 9.33 crore warrants to Elara India Opportunities Fund Ltd and Silver Stallion Ltd. Meanwhile, the airline has requested for additional time from the competent authority to complete the process under the ongoing preferential issue, as per the release. The extension has been sought due to limited banking days arising from long weekends during the intervenin