SpiceJet gets BSE approval to raise funds

New Delhi: Low cost carrier SpiceJet has received in principle approval from the BSE to raise 2,242 crore by issuing shares and warrants convertible into equities on a preferential basis, the company said today. The in principle approval from BSE will allow . The approval comes on the heels of SpiceJet's 39th annual general meeting held on 10 January, where the members approved the proposal for a fund infusion of 2,242 crore.

"The in principle approval from BSE for the fund infusion is a crucial step for SpiceJet as we embark on a journey to enhance our capabilities and strengthen our position in the Indian aviation sector," Ajay Singh, chairman and managing director of SpiceJet, said in a release. A significant portion of the fund infusion will be used to fuel the airline’s growth, expand its network, bring grounded planes back into operation, and position SpiceJet as a more resilient and competitive player in the aviation industry, the company added.

Under the first tranche, it aims to use 360 crore for payment of statutory obligations such as tax deducted at source (TDS), goods and services tax (GST), provident funds (PF), 285 crore as settlement with creditors for past dues, 355 crore by December 2024 for uplifting and ungrounding of fleet and new fleet acquisition, 140 crore for aviation turbine fuel expenses, 54.5 crore for employees and 397 crore for general corporate purposes.

In the second tranche, it aims to use 144 crore for payment of statutory obligations such as TDS, GST, PF, 115 crore for settlement with creditors for past dues, 145 crore for uplifting and ungrounding of fleet and new fleet acquisition, 60 crore for jet fuel expenses, 24 crore for employees and 162 crore for general corporate purposes.

The company’s net liabilities stood at 12584.9 crore as of September 2023, compared to 13147.3 crore in June 2023. “We believe the fund infusion will open new avenues for SpiceJet, enabling us to capitalise on potential opportunities and contribute to the growth of the aviation sector in India," Singh said.

At 1003 am, SpiceJet shares were at 63.43 on the BSE, down 1.88% from the previous close on a day when the benchmark indices hit an all time high. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.