SpiceJet’s Board of Directors has approved the raising of fresh capital of over INR 2,250 Crore (approximately $270 million) through the issue of equity shares and warrants.
In a unanimous decision, the Board approved the issuing of equity shares to financial institutions, foreign institutional investors, high net-worth individuals and private investors ‘aimed at fortifying the airline’s financial strength and accelerating its growth trajectory’. The proposed preferential issues include investors such as Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher and Resonance Opportunities Fund.
Describing the decision as constituting a “significant fund raise,” SpiceJet chairman and managing director Ajay Singh added the move was “designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth”.