SpiceJet board may consider fund raising via QIP on July 23

19 Jul 2024 , 12:44 PM

SpiceJet’s board of directors will meet on July 23 to examine and approve raising additional capital through a qualified institutional placement (QIP), the airline announced on Friday, July 19.

Earlier this week, the airline’s chairman and managing director, Ajay Singh, stated that the firm was looking into ways to raise additional funds to support its expansion objectives and capitalise on the growing demand in the Indian aviation sector.

In February, the company’s board proposed a preferential share offering of up to ₹316 Crore to revitalise stalled aircraft and improve financial performance.

The airline recorded a six-fold increase in its standalone net profit to ₹119 Crore for the January-March quarter of fiscal year 2024. The aviation company had a net profit of ₹17 Crore in the same time previous year. Q4 EBITDA profit increased to ₹386 Crore from ₹344 Crore in Q4 FY23.

Overall, the aviation company cut its losses by about 73%. It reported a post-tax loss of ₹409 Crore, compared to a net loss of ₹1,503 Crore in the previous fiscal year.

SpiceJet has a fleet of Boeing 737s and Q-400s and is one of the country’s main regional players, operating many daily flights through UDAN, or the Regional Connectivity Scheme. The bulk of the airline’s aircraft features SpiceMax, India’s most capacious economy class seating.

At around 10.53 AM, SpiceJet was trading 2.17% higher at ₹56.48, against the previous close of ₹55.28 on NSE. The counter touched an intraday high and low of ₹58.27, and ₹55.50, respectively.

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