Cash-strapped SpiceJet raises Rs 316 crore as part of funding plan

Budget carrier SpiceJet on Thursday said it has raised an additional Rs 316 crore, bringing the total investments raised so far to Rs 1,060 crore under its preferential issue.

Wednesday, the airline's board approved the allotment of 4.01 crore equity shares on a preferential basis to two investors, including Aries Opportunities Fund Ltd.

Additionally, the committee sanctioned the allotment of 2.31 crore warrants, offering the option to apply for and be allotted an equivalent number of equity shares, to four investors, including Elara India Opportunities Fund Ltd," the airline said.


This is part of the funding plan which the cash-strapped carrier had announced in December. Back then, its board had approved raising fresh capital of Rs 2,250 crore from 63 entities, including financial institutions, foreign institutional investors, high-net-worth individuals, and private investors such as Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher, and Resonance Opportunities Fund.

The funding will be raised in two tranches of Rs 1,591.5 crore by June 2024 and Rs 650 crore by July 2025. After the funding, promoter Ajay Singh’s current shareholding in the airline will reduce from 56.49% to at least 38.55 % once the shareholders approve the issuance of equity and warrants. Some 37.9 % of Singh’s stake is pledged with various banks.

Singh has said that the investment will help the airline to induct fresh capacity and reduce liabilities, thereby reducing cost of capital. “It helps us to induct fresh capacity, settle some liabilities which we accrued during Covid. This will also give confidence to lessors, vendors,” he said, adding that the capital raised will put the airline in a comfortable position.