SpiceJet is aiming to raise Rs 2,000 crore by August and plans to expand its capacity by leasing more aircraft, according to Chairman Ajay Singh. Previously, the budget airline raised Rs 1,060 crore as part of a larger fundraising goal of Rs 2,250 crore. However, this plan hit a snag when Mumbai businessman Harihara Mahapatra, his wife Preeti Mahapatra, and 63 other investors withdrew their promised Rs 1,100 crore investment.
Ajay Singh shared, “We had a fundraising round 2-3 months ago. We will have another round in the next couple of months. That will set us on the path to growth. We have secured $150 million and plan to raise another $250 million by mid-August.”
Singh mentioned that the airline aims to “clean its balance sheet” in the next two quarters, emphasizing, “It is very difficult to kill SpiceJet. We have a tendency to survive. Now, we are trying to grow again.”
Financial Challenges
Financial troubles have plagued SpiceJet, with multiple aircraft and engine lessors taking the airline to court over unpaid lease rentals. The airline’s fleet has shrunk to around 25 operating planes from nearly 90 before the pandemic, due to lessors repossessing planes and others being grounded due to engine issues.
SpiceJet approached several lessors to convert their debt into equity. So far, only Carlyle Aviation Partners, with the largest exposure, has agreed to take a 5.91% stake in the airline in exchange for lease arrears.
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.
