SpiceJet Board Approves Rs 2,250 Crore Capital Infusion

By siliconindia  |  Tuesday, 12 December 2023, 05:27:42 PM IST

SpiceJet Board Approves Rs 2,250 Crore Capital Infusion
SpiceJet's Board of Directors has given the green light to raise more than Rs 2,250 crore in fresh capital. This will be achieved through the issuance of equity shares to Financial Institutions, Foreign Institutional Investors (FIIs), High Net Worth Individuals (HNIs), and private investors. The objective is to bolster the airline's financial resilience and expedite its path to growth.
"The Board, in a unanimous decision during a meeting, considered and approved issuance of equity shares/equity warrants under private placement basis, subject to shareholder and regulatory approvals as may be required", said airline official. The planned preferential issues involve a group of investors such as Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher, Resonance Opportunities Fund, and others. These investors are set to receive equity shares and equity warrants, with a combined value exceeding Rs 2,250 crore.
"This is a significant fund raise and it is designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth in the dynamic aviation sector", said Ajay Singh, Chairman and Managing Director, SpiceJet.
He expressed optimism about the positive impact these developments would have on the airline’s future. "We are confident that this capital raise will help us achieve our goal of building a world class airline in India. I personally thank all our stakeholders, all those who work for SpiceJet and all those who work with SpiceJet and who have patiently waited for this day. They have allowed us the time and opportunity to overcome a difficult phase in our history, and we are grateful to them", Singh said.
Source: IANS

ON THE DECK

siliconindia