SpiceJet airline's board approves raising Rs 3,000 crore through QIP

SpiceJet airline's board on Tuesday approved the proposal to raise Rs 3,000 crore by issuing equity shares or other securities through the qualified institutional placement (QIP) process.

For the last several quarters, SpiceJet has been grappling with a cash crunch amid multiple legal battles over unpaid dues to aircraft lessors, engine lessors, lenders, and former promoter Kalanithi Maran.

The airline had on July 15 reported a 72.4 per cent year-on-year (Y-o-Y) reduction in its consolidated net loss to Rs 418.3 crore. This marks the sixth consecutive year the airline has posted a loss.

Earlier this year, the airline's shareholders had approved the issuance of equity and warrants for raising Rs 2,241 crore, out of which the airline could raise Rs 1,060 crore.

 

In a statement on BSE on Tuesday, the airline stated that its board has "approved raising of funds aggregating up to Rs 3,000 crore through the issue of equity shares or any other eligible securities to qualified institutional buyers by way of qualified institutional placement under the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018."

Five years back, SpiceJet was operating about 4,000 flights per week. Currently, the airline is operating just about 1,154 flights per week, according to Cirium.

The budget airline was last in green in 2017-18, when it posted a consolidated net profit of Rs 557.4 crore. SpiceJet had earlier this month stated: "Losses over the last few years have been primarily driven by adjustments on account of implementation of Ind AS 116 (new accounting standard that came into force in 2019), adverse foreign exchange rates, operational disruption during COVID-19 followed by sub-optimal operations due to liquidity constraints faced by the Group."

Tata Consumer to raise Rs 3K cr with rights issue
 

Tata Consumer Products announced a rights issue of around Rs 3,000 crore on Tuesday, it said in an exchange filing. The company will issue 36 million new shares at Rs 818 per share. The right issue will open on August 5 and close on August 19, it said. The rights issue price is at a discount of 35 per cent to the current market price of Rs 1,258 per share.