The board of Aviation carrier SpiceJet Ltd. has approved raising a sum of ₹2,250 crore through the issue of equity shares and warrants, the airline told the exchanges in a statement.
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SpiceJet will issue a total of 32.08 crore equity shares at a price of ₹50 per share. This is a 21% discount from the stock’s highest point on Tuesday, which was ₹63.49 per share. The issue of equity shares translates into a fund raise of ₹1,600 crore.
Additionally, the board has also approved the issue of 13 crore convertible warrants at ₹50 per warrant, totalling ₹650 crore.
“This is a significant fund raise and it is designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth in the dynamic aviation sector,” SpiceJet Chairman & MD Ajay Singh said in a statement.
A total of 64 allottees will be issued the shares and warrants, prominent among them being Aries Opportunities Fund, Ashwin Mehta HUF, Elara India Opportunities Fund, among other.
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“The fund infusion will go a long way in enhancing product presence and market reach of SpiceJet and will also provide a deep financial foundation,” the company said.
Additionally, SpiceJet also reported a net loss of ₹432 crore for the July-September period. The airline had reported a net profit of ₹6.2 crore in the June quarter.
During the same period last year, the airline had reported a net loss of ₹835 crore.
Promoter Ajay Singh has infused a sum of ₹200 crore out of the ₹500 crore promised earlier. The airline has also allotted shares to Carlyle Aviation to convert debt of ₹230 crore. It also recently settled dues with aircraft lessor Castle Lake and repaid a loan worth ₹100 crore from City Union Bank.
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Shares of SpiceJet fell as much as 7.5% post the fund raising and earnings announcement before recovering. The stock is currently trading 4% lower at ₹58.06.
