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:
- 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).
- Outstanding Liabilities: ₹750 crore will be used to settle debts with aircraft lessors, engineering vendors, and financiers.
- 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.
- 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.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
