SpiceJet Plans to Raise Rs 3,000 Crore Through Issuance of Securities | Details Here
New Delhi: In a significant financial move, the national carrier SpiceJet has announced its intentions to bolster its financial health by raising Rs 3,000 crore. This will be achieved through the issuance of securities, as per the recent approval from its board of directors. This strategic financial initiative comes at a time when the airline has been navigating through challenging headwinds, seeking avenues to secure more funds to sustain and expand its operations.
SpiceJet has made a regulatory filing, outlining that the board has authorized fundraising of up to Rs 3,000 crore. This amount will be garnered through the issue of equity shares or other eligible securities that are available to qualified institutional buyers under the framework of a qualified institutional placement. This financial maneuver is aimed at providing the airline with a much-needed capital infusion to ensure its continued growth and operational stability.
Earlier in the year, SpiceJet had made announcements regarding the securing of additional finances. In February, the airline disclosed that it had raised an additional Rs 316 crore, which brought the total funds raised to Rs 1,060 crore through a preferential share issue. This was not the airline’s first attempt at securing funds through securities issuance; in January, SpiceJet had announced the receipt of Rs 744 crore as the first tranche through the allotment of securities on a preferential basis.
The decision to raise funds through the issuance of securities is not new for SpiceJet. In December of the previous year, the airline had outlined plans to raise fresh capital amounting to Rs 2,250 crore through similar means. This consistent strategy of securing capital demonstrates SpiceJet’s proactive stance in fortifying its financial foundation amidst the volatile aviation sector.
Despite the operational and financial challenges, SpiceJet has continued to maintain a presence in the Indian aviation market. As of June, the airline held a domestic market share of 3.8 percent, as per official data. The decision to raise Rs 3,000 crore through the issuance of securities is anticipated to usher in a new phase of growth and development for the airline, enabling it to better compete within the highly competitive and dynamic aviation industry.
As SpiceJet gears up for this substantial fundraise, the industry and stakeholders are keenly watching. The successful mobilization of these funds could serve as a beacon for other carriers navigating similar challenges, highlighting the viability of innovative financial mechanisms in securing the future of aviation enterprises.
