In January, SpiceJet initiated its fundraising efforts by receiving the first tranche of funds totaling Rs 744 crore through the allotment of securities on a preferential basis.
On Thursday, SpiceJet announced a successful additional fundraising of Rs 316 crore, bringing the total raised funds to Rs 1,060 crore through a preferential share issue. This move comes in the wake of the company’s recent decision to reduce its workforce by 10-15%.
The initial investment in January marked the beginning of SpiceJet’s endeavor to raise fresh capital of Rs 2,250 crore through the issuance of securities.
On February 21, 2024, the Preferential Allotment Committee of SpiceJet’s Board of Directors approved the allotment of 4.01 crore equity shares to two investors, one of which is Aries Opportunities Fund Limited. Additionally, the committee authorized the allotment of 2.31 crore warrants, providing the option to apply for an equivalent number of equity shares, to four investors, including Elara India Opportunities Fund Limited.
Ajay Singh, Chairman and Managing Director of SpiceJet, conveyed his confidence in the company’s growth prospects and financial stability. He emphasized that the significant capital infusion reflects investor confidence and stated that the additional funding will support SpiceJet’s expansion plans and bolster its operational capabilities.
In recent quarters, SpiceJet has faced difficulties stemming from funding shortages, leading to aircraft groundings and lease payment issues. As of February 21, almost half of its 65-aircraft fleet remained inactive, highlighting the operational repercussions of financial constraints. With the recently secured funds, SpiceJet endeavors to overcome these obstacles and advance its expansion endeavors.
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