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SpiceJet to raise Rs 2,250 cr via equity to push growth and improve financial position
Photo Courtesy: Wikimedia Commons

SpiceJet to raise Rs 2,250 cr via equity to push growth and improve financial position

| @indiablooms | 12 Dec 2023, 11:54 pm

Mumbai: SpiceJet's board on Tuesday approved the raising of fresh capital exceeding Rs 2,250 crore, ET reported.

The company is looking to strengthen the financial position of the airline and expedite its growth trajectory with the infusion of fresh capital, said the report.

This will be achieved through the issuance of equity shares to financial institutions, FIIs, HNIs, and private investors.

Following the board meeting, the company revealed its intention to issue equity shares and equity warrants through private placement, pending shareholder and regulatory approvals as necessary.

As part of the initiative, SpiceJet aims to issue approximately 32 crore equity shares and 13 crore convertible warrants at an issue price of Rs 50.

The proposed preferential issue will attract investments from entities such as Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher, and Resonance Opportunities Fund.

"This is a significant fundraise and it is designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth in the dynamic aviation sector," said Ajay Singh, Chairman and Managing Director, SpiceJet.

He said that the capital raise would help the airline in accomplishing the objective of establishing a world-class airline in India.

The capital raised will be instrumental in funding operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements, SpiceJet said.

Meanwhile, the airline also released its financial results for the September quarter, revealing a net loss of Rs 428 crore, compared to a net loss of Rs 835 crore during the same period in the previous fiscal year.

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