SpiceJet gets board approval to raise ₹3,000 Crore via QIP

24 Jul 2024 , 12:30 PM

SpiceJet stated that the company’s board of directors approved a ₹3,000 Crore fundraising through qualified institutional placement (QIP) to institutional purchasers.

The funds will help SpiceJet decrease debt and strengthen its balance sheet, laying the groundwork for future growth. The airline intends to use the capital to increase operational efficiency, invest in new technologies, and improve the passenger experience. The company disclosed the fundraise in a separate filing on July 18.

The funds may also be used to expand the company’s fleet, increasing capacity and capitalising on the expanding demand for air travel.

Ajay Singh, the airline’s chairman and managing director, had stated that the company was looking to raise additional funds to accelerate its growth goals and capitalise on the demand in the Indian aviation sector.

SpiceJet shares have nearly doubled in value during the last year, rising by about 92%.

In February, the company’s Board approved a preferential share offering of up to ₹316 Crore to revive grounded aircraft and improve financial performance.

In the January-March quarter, the company reported a consolidated net profit of ₹127 Crore, compared to a loss of ₹299 Crore in the previous quarter and a loss of ₹6 Crore the year before. In Q4FY24, consolidated revenue from operations fell 9.1% to ₹1,738 Crore, compared to the previous quarter. Revenue decreased 19% year on year in the March quarter.

At around 12.23 PM, SpiceJet was trading 1.83% higher at ₹57.76, against the previous close of ₹56.72 on NSE. The counter touched an intraday high and low of ₹58.75, and ₹56.72, respectively.

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