- SpiceJet board approves ₹3,000 crore through Qualified Institutional Placement (QIP).
- Funds will be used for statutory dues, fleet maintenance, and new aircraft.
- The airline’s equity capital increased to ₹12.82 billion after the share issue.
SpiceJet announced a significant financial boost by raising ₹3,000 crore through the issuance of 48.71 crore shares at ₹61.60 each.
he fresh infusion of capital is aimed at stabilizing the airline’s financial position, with plans to address overdue statutory payments, settle creditor liabilities, and enhance its operational fleet.
SpiceJet’s ₹3,000 Crore Fundraise to Pay Dues and Revitalize Fleet
The airline, which has faced operational challenges in recent years, aims to regain momentum by focusing on aircraft maintenance and fleet expansion. A portion of the raised capital will be allocated toward employee dues and airport payments, signaling an effort to improve overall business efficiency. With a reduced active fleet, the capital injection is seen as critical for SpiceJet’s turnaround.
A major chunk of the funds will go towards resolving ₹750 crore in creditor liabilities, which include payments to aircraft lessors, engine vendors, and financiers. This initiative will also enable SpiceJet to reactivate grounded aircraft and expand its fleet with new models. The airline’s current fleet stands at just 20 aircraft, a significant drop from its peak of 74 planes in 2019.
The financial boost is also expected to cover critical operational costs, such as ₹410 crore for aircraft maintenance and ₹370 crore for new fleet induction. These investments will not only improve the airline’s capacity but also streamline its operational efficiency, allowing it to compete in a highly competitive industry. Moreover, ₹118.9 crore has been earmarked for the payment of employee dues, ensuring better morale within the workforce.
SpiceJet’s fundraising effort is part of a broader strategy to revitalize the business after several years of operational struggles. The airline has been under enhanced surveillance by the DGCA, and this capital infusion is seen as crucial for addressing both financial and operational concerns. With plans for fleet expansion and better cash flow management, SpiceJet aims to restore stability in the coming months.
The ₹3,000 crore capital raise is a pivotal step in SpiceJet’s strategy to stabilize its financial health, revive its fleet, and return to full operational capacity. With key payments and fleet expansions on the horizon, the airline is positioning itself for a much-needed revival.
“SpiceJet plans to use the proceeds from the issue for several key objectives aimed at stabilizing its ‘financial health’ and resuming full operations.”
