The proposal was put to shareholders’ voting at the company’s 39th annual general meeting.
The airline hopes the capital infusion will help revive its grounded planes that continue to weigh on the financial results of the company.
Under the fundraising plan, SpiceJet will issue up to about 32 crore equity shares and 13 crore convertible warrants at an issue price of Rs 50.
The proposed preferential issues comprise investors like Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited and Nexus Global Fund, among others.
Once a high-flying airline, SpiceJet has grounded as many as 25 of its planes as it struggles to repay its lessors.
The proposed fund infusion will go a long way in enhancing the product presence and market reach and will also provide a deep financial foundation, SpiceJet said, adding that the capital raised will be instrumental in funding operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements.”We also believe the fundraise will help clear some unpaid dues besides restoring the fleet,” it had said.
SpiceJet’s grounded fleet has also brought down its market share to 5.4% as of October 203, from 7.3% in the preceding year, with rivals like IndiGo benefiting.
In the September quarter, the struggling losses halved to Rs 432 crore, mainly due to cost-saving strategies and cutting down on expenses.
The airline’s cash and cash equivalents rose to Rs 190 crore as of September 2023. Its net cash from operational activities was a negative Rs 157 crore in the six months ended September 2023.
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