In its first funding round, SpiceJet obtains Rs 744 crore from investors

NEW DELHI: SpiceJet, an airline founded by promoter Ajay Singh, said that it has successfully raised the first tranche of capital infusion, valued at Rs 744 crore, by issuing securities to investors on a preferential basis.

In a media release, SpiceJet, which has been dealing with a number of challenges, said that its Board of Directors met on January 25 and gave its approval for the preferential allocation of shares and warrants.
It is anticipated that the money obtained will be crucial in supporting plans for operational development, such as improving the fleet, expanding the route network, and advancing technology.
“SpiceJet is due to complete another tranche of equity/warrants raise from remaining subscribers and has requested additional time from the competent authority to complete the process under the ongoing preferential issue, as approved by the shareholders of the company on January 10, 2024,” the business stated in its statement.
It said that the delay was required due to the short number of banking days that resulted from lengthy weekends in the meantime.
“We are pleased with the completion of the first tranche of our preferential allotment, which demonstrates the confidence of investors in SpiceJet’s growth prospects and we remain committed to completing the further allotment process progressively,” stated Ajay Singh, Chairman and Managing Director of SpiceJet
“The fund infusion will open new avenues for SpiceJet, resulting in a more cash-efficient operation, expanded fleet and network,” Singh said.
In Q2 FY2024, SpiceJet’s net loss decreased to Rs 428 crore, a noteworthy reduction from the net loss of Rs 835 crore in Q2 FY2023.
About 250 flights per day are operated by SpiceJet to 48 locations in India and beyond. A variety of aircraft, including the Boeing 737 Max, Boeing 700, and Q400s, are part of its fleet.
May 2005 saw the introduction of SpiceJet.