Updated January 27th, 2024 at 11:59 IST
SpiceJet secures initial funding tranche of Rs 744 crore in ongoing capital raise
The airline saw its board of directors approving the allotment of 5.55 crore equity shares to 54 subscribers on January 25.
SpiceJet has successfully garnered the first tranche of funds amounting to Rs 744 crore through the issuance of securities on a preferential basis. The airline, which announced plans on December 12 to raise fresh capital totalling Rs 2,250 crore, saw its board of directors approving the allotment of 5.55 crore equity shares to 54 subscribers on January 25.
In this initial phase, SpiceJet has allotted shares and warrants, marking a major step in the capital-raising process. The board has further greenlit the allocation of 9.33 crore warrants to Elara India Opportunities Fund Ltd and Silver Stallion Ltd.
Acknowledging the need for an extension in the ongoing preferential issue process, the airline has formally requested additional time from the competent authority. This extension is attributed to the limited banking days due to extended weekends during the intervening period, although specific dates were not disclosed.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed confidence that the injected funds would pave the way for new opportunities, contributing to a more cash-efficient operation, an expanded fleet, and an enhanced network for the airline.
Published January 27th, 2024 at 11:59 IST