Budget airline SpiceJet announced on Monday that it has raised Rs 3,000 crore through a qualified institutional placement (QIP). With this fresh capital, the airline plans to accelerate its fleet expansion, improve operational efficiency, and re-establish itself in India’s highly competitive aviation market. SpiceJet’s reputation has suffered in recent years due to severe financial struggles, which led to grounded aircraft and disrupted services.
“The fresh capital raised will be instrumental in ungrounding SpiceJet’s fleet, acquiring new aircraft, investing in technology, and expanding into new markets,” the airline said in a statement. “We aim to restore our reputation for efficiency and reliability, offering passengers improved connectivity and a wider range of travel options,” it added.
While much of India’s aviation sector has rebounded following the COVID-19 pandemic, SpiceJet has struggled with financial distress, impacting its fleet and market share.
The QIP, which closed on September 18, was oversubscribed, indicating strong investor confidence in the airline’s growth prospects. SpiceJet also expects to receive an additional Rs 736 crore from a previous funding round, providing the company with significant liquidity to address its challenges.
“The strong response from investors is a testament to their faith in SpiceJet’s potential to scale rapidly and become a formidable player in India’s aviation sector,” said Ajay Singh, SpiceJet’s Chairman and Managing Director. Singh emphasized that this fundraise marks a pivotal moment for the airline as it works to rebuild its fleet and market position.
Among the investors in the QIP were major global players like Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets, and Nomura Singapore, along with leading Indian mutual funds like Tata Mutual Fund and Bandhan Infrastructure Fund.