SpiceJet board okays Rs 2,250 crore capital infusion

New Delhi : The Board of Directors of SpiceJet approved the raising of fresh capital of over Rs 2,250 crore through the issuance of equity shares to Financial Institutions, FIIs, HNIs and private investors aimed at fortifying the airline's financial strength and accelerating its growth trajectory.

“The Board, in a unanimous decision during a meeting on Tuesday, considered and approved issuance of equity shares/equity warrants under private placement basis, subject to shareholder and regulatory approvals as may be required,” said an airline official.

The proposed preferential issues comprise investors including Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher, Resonance Opportunities Fund among others for issuance of equity shares and equity warrants aggregating to over Rs 2,250 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,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

He expressed optimism about the positive impact these developments would have on the airline’s future.

“We are confident that this capital raise will help us achieve our goal of building a world class airline in India. I personally thank all our stakeholders, all those who work for SpiceJet and all those who work with SpiceJet and who have patiently waited for this day. They have allowed us the time and opportunity to overcome a difficult phase in our history, and we are grateful to them,” Singh said.