Edited by Deepali Verma
Ajay Singh-led airline SpiceJet said it has wrapped up the raising of the first tranche of capital infusion worth Rs 744 crore via the allotment of securities on a preferential basis. SpiceJet, facing multiple headwinds, revealed in a media statement that its Board of Directors recently met and approved the allotment of shares and warrants on a preferential basis.
The raised funds are expected to play a crucial role in financing operational expansion initiatives, such as the fleet enhancement, route network expansion, and technological advancements.
“SpiceJet is due to go through another tranche of equity/warrants raise from the remaining subscribers and has asked for added time from the competent authority to finish the process under the ongoing preferential issue, as approved by the shareholders of the company on January 10, 2024,” read the company statement.
The extension, it said, was necessary on account of limited banking days owing to the long weekends during the intervening period.
“We are happy with the completion of the first tranche of our preferential allotment. This demonstrates the confidence of investors in SpiceJet’s growth prospects and we carry high commitment to complete the further allotment process progressively,” said Ajay Singh, Chairman and Managing Director of SpiceJet.
“The fund infusion promises new avenues for SpiceJet, resulting in an enhanced cash-efficient operation, expanded fleet and network,” Singh added.
SpiceJet managed to bring down its net loss to Rs 428 crore in Q2 FY2024, an important improvement from the net loss of Rs 835 crore in Q2 FY2023.
SpiceJet operates close to 250 daily flights to 48 destinations within Bharat and to international destinations. Its fleet is a mix of aircraft, having the Boeing 737 Max, Boeing 700 and Q400s.
The launch of SpiceJet was in May 2005.
