In a bid to navigate multiple challenges, SpiceJet announced on Friday that it has successfully received Rs 744 crore as the initial tranche of funds through the issuance of securities on a preferential basis. This move is part of the airline’s broader plan to raise fresh capital amounting to Rs 2,250 crore.
Board Approval and Equity Shares Allotment
On January 25, the airline’s board of directors granted approval for the allotment of 5.55 crore equity shares on a preferential basis to 54 subscribers. This strategic move aims to strengthen the Spicejet‘s financial position and address the hurdles it has been facing.
Warrants Allotment and Future Plans
SpiceJet has allocated shares and warrants totaling Rs 744 crore in the first tranche of this capital infusion. Furthermore, the board has greenlit the allotment of 9.33 crore warrants to Elara India Opportunities Fund Ltd and Silver Stallion Ltd, indicating a strategic partnership for the airline’s growth.
Extension Request for Ongoing Preferential Issue
In light of challenges related to limited banking days during long weekends, SpiceJet has requested additional time from the competent authority to complete the ongoing preferential issue process. Specific dates for this extension were not disclosed in the release.
Ajay Singh’s Vision for SpiceJet’s Future
Ajay Singh, the Chairman and Managing Director of SpiceJet, expressed optimism about the fund infusion, stating that it will pave the way for new opportunities. The capital injection is expected to enhance the airline’s cash efficiency, support fleet expansion, and enable the expansion of its network.
(With PTI Inputs)