Cash-strapped airline SpiceJet plans to raise over Rs 3,200 crore through a combination of qualified institutional placement (QIP), warrants, and promoter capital infusion, the company announced on Friday.
The funds will be used to reactivate its grounded fleet, settle liabilities, induct new aircraft, and cover general expenses. SpiceJet’s plan includes raising Rs 2,500 crore through QIP and Rs 736 crore through warrants and promoter infusion, according to the airline’s investor presentation. The proposed funding is subject to shareholder approval.
Earlier this year, the Ajay Singh-promoted airline managed to raise only Rs 1,060 crore through preferential issues, falling short of its Rs 2,250 crore funding plan announced in December 2023.
The airline has faced challenges including fleet reduction, high working capital costs, escalating fixed costs, airport rentals, and outstanding statutory dues.
As of 2024, SpiceJet’s operational fleet has dwindled to 28 aircraft from 74 in 2019, with 36 aircraft grounded due to financial constraints. However, according to the fleet tracking website Planespotter.net, as of September 5, SpiceJet had only 20 aircraft in operation and 38 grounded. Many of these aircraft are reportedly out of service due to legal disputes with lessors and vendors over unpaid dues.
SpiceJet has outstanding dues amounting to Rs 3,700 crore for aircraft leases, engineering services, and statutory payments.
From: financialexpress
Financial News
