On Saturday, SpiceJet announced that its board has approved the issuance and allotment of 48,70,12,986 equity shares to qualified institutional buyers at an issue price of ₹61.60 per share, which includes a premium of ₹51.60 per share. The shares were offered at a discount of ₹3.19 per share compared to the floor price, bringing the total amount raised to ₹2,999.99 crore.
In a regulatory filing, the airline stated, “Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the company stands increased from ₹7,94,67,27,170 consisting of 79,46,72,717 equity shares to ₹12,81,68,57,030 consisting of 1,28,16,85,703 equity shares.” This comes after shareholders approved a plan to raise up to ₹3,000 crore last week. The financially troubled carrier, which has been operating with a reduced fleet and facing legal hurdles, is turning to this fundraising to meet its various obligations.
SpiceJet has been dealing with numerous challenges, including financial struggles, legal disputes, and grounded aircraft. The fresh funds are expected to aid the airline in addressing these issues, providing much-needed financial relief.
As of September 15, the airline’s statutory dues amounted to ₹601.5 crore. The net proceeds from the share placement will be used to settle these dues. This includes ₹297.5 crore for the deposit of Tax Deducted at Source (TDS), ₹156.4 crore for employees’ provident fund deposits, and ₹145.1 crore related to Goods and Services Tax (GST). Additionally, the funds will help settle liabilities with creditors, including aircraft and engine lessors, engineering vendors, and financiers.
On Friday, SpiceJet shares declined by 3.25%, closing at ₹66.16 per share on the BSE.
In another development, the Supreme Court upheld a Delhi High Court ruling that ordered SpiceJet to ground three aircraft engines due to non-payment to lessors. A bench led by Chief Justice D Y Chandrachud, along with Justices J B Pardiwala and Manoj Misra, dismissed the airline’s appeal against the high court’s September 11 verdict. The bench stated, “We will not interfere. It’s a correct order,” signaling that SpiceJet must comply with the ruling.
