SpiceJet concludes first round of capital injection, raises INR 744 crore, ET TravelWorld

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<p>Shares of SpiceJet were locked in 20% upper circuit and hit a 15-month high in trade on Thursday, buoyed by the airline’s plans to consider fundraising options.<br /></p>
Shares of SpiceJet were locked in 20% upper circuit and hit a 15-month high in trade on Thursday, buoyed by the airline’s plans to consider fundraising options.

Budget carrier SpiceJet has successfully completed the initial phase of its capital infusion plan, securing INR 744 crore through the allotment of shares and warrants on a preferential basis.

In a significant move, the Company’s Board of Directors, in its meeting on January 25, 2024, sanctioned the allocation of 5.55 crore equity shares to 54 subscribers. Furthermore, the Board greenlit the allotment of 9.33 crore warrants, offering the option for equivalent equity share acquisition, to Elara India Opportunities Fund Limited and Silver Stallion Limited.

SpiceJet is now poised to execute another round of equity/warrants issuance to remaining subscribers. However, the company has sought an extension from the competent authority to finalise the process due to limited banking days, particularly during long weekends in the intervening period.

Ajay Singh, Chairman and Managing Director of SpiceJet, expressed satisfaction with the successful completion of the initial tranche, emphasising investors’ confidence in the airline’s growth trajectory. He reiterated SpiceJet’s commitment to progressing with the subsequent allotment process, foreseeing enhanced operational efficiency, fleet expansion, and network augmentation as key outcomes of the capital infusion.

“We are pleased with the completion of the first tranche of our preferential allotment, which demonstrates the confidence of investors in SpiceJet’s growth prospects and we remain committed to completing the further allotment process progressively. The fund infusion will open new avenues for SpiceJet, resulting in a more cash-efficient operation, expanded fleet and network,” he said.

This development underscores SpiceJet’s strategic initiatives to fortify its financial position and bolster its operational capabilities in the dynamic aviation landscape.

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  • Published On Jan 29, 2024 at 01:06 AM IST

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