SpiceJet
To get SpiceJet out of financial crisis, the company’s promoter and chairman Ajay Singh can sell more than 10 percent stake in the airline. Sources gave this information. This round is expected to be completed by the end of September. The budget airline is facing many problems including financial challenges, legal battles and grounding of aircraft. The company is trying to raise funds, which will help it to meet various obligations. A source said that if the conditions are favorable, Singh can sell up to 15 percent stake in the airline. Another source said that Chairman and Managing Director (CMD) Ajay Singh will sell about 10 percent stake in the airline and this amount can also increase.
No official comment has been made
Sources close to the matter said there is already a commitment of up to Rs 2,000 crore for the proposed QIP (qualified institutional placement) and the airline is in discussions with potential investors. Meetings have been held with investors in India and abroad. There has been no official comment from SpiceJet. The financing phase is expected to be completed by the end of September. According to data available on the BSE, the promoter group held a little over 47 per cent stake in the airline at the end of June 2024. SpiceJet had a fleet of 74 aircraft in 2019. The company is currently operating about 20 aircraft.
Trying to raise funds from QIP as well
The airline said in a presentation on Friday that it plans to raise Rs 3,200 crore through QIP, warrants and promoter capital infusion. The funds will be used for retirement of grounded fleet, settlement of liabilities, induction of new fleet and other general purposes. “SpiceJet plans to raise Rs 2,500 crore through QIP and Rs 736 crore through issue of warrants and promoter capital infusion,” the airline said in a presentation to investors.
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