SpiceJet Approves ₹3,000 Crore QIP: Share Issue at ₹61.60 Set to Boost Airline’s Financial Health

Low-cost airline SpiceJet has announced that its board has approved the issuance of 48.71 crore equity shares to qualified institutional buyers (QIBs) to raise ₹3,000 crore. The issue price is set at ₹61.60 per share, which includes a premium of ₹51.60. The floor price offered a small discount of ₹3.19 per share.

With this new share issue, SpiceJet’s total paid-up equity capital will increase from ₹7,946.7 crore to ₹12,816.8 crore.

On Friday, the airline confirmed that its shareholders had approved a special resolution to raise funds up to ₹3,000 crore. The company plans to use the proceeds to improve its financial situation and resume full operations.

Key Uses of the Funds:

1. Statutory Dues: SpiceJet will allocate ₹601.5 crore towards unpaid taxes and contributions, including TDS (Tax Deducted at Source), provident fund, and GST (Goods and Services Tax).
2. Outstanding Liabilities: ₹750 crore will be used to settle debts with aircraft lessors, engineering vendors, and financiers.
3. Fleet Maintenance and Expansion: The airline will invest ₹410 crore to repair grounded planes and another ₹370 crore for adding new planes to its fleet.
4. Employee Dues and Airport Payments: ₹118.9 crore will go towards paying employees, while ₹150.3 crore will be used for airport-related expenses.

SpiceJet, which operated 74 planes in 2019, is now flying only about 20 aircraft. The airline’s stock closed 3.25% lower at ₹66.16 on the Bombay Stock Exchange on Friday.