SpiceJet on Thursday announced that it has successfully raised an additional Rs 316 crore, bringing its total raised funds to Rs 1,060 crore through a preferential share issue. This development follows the company’s recent decision to reduce its workforce by 10-15%.
In January, SpiceJet received the first tranche of funds amounting to Rs 744 crore through the allotment of securities on a preferential basis. This initial investment marked the beginning of SpiceJet’s efforts to raise fresh capital of Rs 2,250 crore through the issuance of securities.
Details of the Recent Funding
The Preferential Allotment Committee of SpiceJet’s Board of Directors, convened on February 21, 2024, approved the allotment of 4.01 crore equity shares to two investors, including Aries Opportunities Fund Limited. Additionally, the committee sanctioned the allotment of 2.31 crore warrants, offering the option to apply for an equivalent number of equity shares, to four investors, including Elara India Opportunities Fund Limited.
Statement from SpiceJet
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed confidence in the company’s growth prospects and financial stability, stating that the significant capital infusion reaffirms investor confidence. He emphasized that the additional funding will support SpiceJet’s expansion plans and enhance its operational capabilities.
Challenges and Future Plans
SpiceJet has encountered challenges in recent quarters due to funding shortages, resulting in aircraft groundings and lease payment issues. As of February 21, nearly half of its 65-aircraft fleet remained grounded, reflecting the impact of financial constraints on operations. With the newly secured funds, SpiceJet aims to address these challenges and move forward with its expansion initiatives.