Promoter Ajay Singh-led airline SpiceJet said it has completed raising the first tranche of capital infusion worth Rs 744 crore through the allotment of securities on a preferential basis.
Board Approval for Allotment
SpiceJet, which has been facing multiple headwinds, said in a media statement that its Board of Directors met on January 25 this year and approved the allotment of shares and warrants on a preferential basis.
Utilizing Raised Funds
The raised funds are expected to play a pivotal role in financing operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements.
Ongoing Preferential Issue
"SpiceJet is due to complete another tranche of equity/warrants raise from remaining subscribers and has requested additional time from the competent authority to complete the process under the ongoing preferential issue, as approved by the shareholders of the company on January 10, 2024," the company said in the statement.
The extension, it said, was necessitated on account of limited banking days arising from long weekends during the intervening period.
"We are pleased with the completion of the first tranche of our preferential allotment, which demonstrates the confidence of investors in SpiceJet's growth prospects and we remain committed to completing the further allotment process progressively," said Ajay Singh, Chairman and Managing Director of SpiceJet.
"The fund infusion will open new avenues for SpiceJet, resulting in a more cash-efficient operation, expanded fleet and network," Singh added.
Financial Performance Improvement
SpiceJet reduced its net loss to Rs 428 crore in Q2 FY2024, a significant improvement from the net loss of Rs 835 crore in Q2 FY2023.
Operational Overview
SpiceJet operates about 250 daily flights to 48 destinations within India and to international destinations. Its fleet is a mix of aircraft, including the Boeing 737 Max, Boeing 700 and Q400s.
SpiceJet was launched in May 2005.
