SpiceJet to raise ₹3,000 Crore via QIP

17 Sep 2024 , 11:15 AM

SpiceJet Ltd. has announced a Qualified Institutional Placement in which it intends to raise capital by selling shares to qualifying institutional investors.

SpiceJet wants to raise up to ₹3,000 Crore through the QIP, with a base size of ₹1,500 Crore and a green shoe option of an additional ₹1,500 Crore, according to sources.

The QIP’s floor price of ₹64.79 per share represents a 16.6% discount from the airline’s closing price on Monday.

According to sources, the QIP’s indicated issue price is ₹61.6 per share, a 20.8% decrease from Monday’s BSE closing price.

At the indicative offering price, this QIP will dilute almost 38% of the post-issue paid-up equity share capital.

SpiceJet said last week that it had won clearance to collect cash via a postal ballot on September 13, a resolution that received 99.8% acceptance. The airline wants to raise ₹736 Crore from past warrants and promoter payments, in addition to ₹2,500 Crore from a QIP.

SpiceJet may utilise the money from this QIP to pay down debts, restructure with lessors, and expand its fleet by reviving grounded aircraft and adding new planes.

SpiceJet’s liquidity issue is reflected in monthly aviation figures, where its market share fell to 3.1% in July. The airline also placed around 150 cabin personnel on leave without pay and had to cancel flights from Dubai.

At around 10.33 AM, SpiceJet was trading 3.88% lower at ₹74.77, against the previous close of ₹77.79 on NSE. The counter touched an intraday high and low of ₹76.39, and ₹72.85, respectively.

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