SpiceJet Board Approves Raising of over INR 2,250 Crore through Issue of Equity/Equity Warrants
Fresh capital will strengthen SpiceJet's financial position and provide resources to invest in growth plans
GURUGRAM, India, Dec. 15, 2023 /PRNewswire/ -- The Board of Directors of SpiceJet Ltd. has approved the raising of fresh capital of over INR 2,250 Crore (approximately USD 270 million) through the issuance of equity shares to Financial Institutions, FII's, HNI's and private investors aimed at fortifying the airline's financial strength and accelerating its growth trajectory.
The Board, in a unanimous decision, considered and approved issuance of equity shares/equity warrants under private placement basis, subject to shareholder and regulatory approvals as may be required.
The proposed preferential issues comprise of investors like Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher, Resonance Opportunities Fund and many more for issuance of equity shares and equity warrants aggregating to over INR 2,250 Crore.
The proposed fund infusion will go a long way in enhancing product presence and market reach of SpiceJet and will also provide deep financial foundation. The capital raised will be instrumental in funding operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements.
"This is a significant fund raise 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 expressed optimism about the positive impact these developments would have on the airline's future.
"We are confident that this capital raise will help us achieve our goal of building a world class airline in India. I personally thank all our stakeholders, all those who work for SpiceJet and all those who work with SpiceJet and who have patiently waited for this day. They have allowed us the time and opportunity to overcome a difficult phase in our history, and we are grateful to them," Singh said.
SpiceJet has on order more than 200 Boeing 737 Max aircraft.
About SpiceJet:
SpiceJet is India's favourite airline that has made flying affordable for more Indians than ever before. SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s & Q-400s and is one of the country's largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme.
SOURCE SpiceJet
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