With Rs 3,000-crore fund raise, SpiceJet hopes to ‘restore its reputation’

The QIP, which closed connected September 18, was oversubscribed, which SpiceJet sees arsenic a objection of capitalist assurance successful the airline’s maturation prospects. Apart from the Rs 3,000 raised done the QIP route, the hose said that it volition person different Rs 736 crore from its earlier backing round.

“The QIP attracted a divers excavation of top-tier organization investors and communal funds, reaffirming the market’s content successful SpiceJet’s quality to navigate manufacture challenges and capitalise connected the increasing request successful the aviation sector,” the hose said.

Investors that participated successful the SpiceJet QIP includes Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore Limited ODI, Tata Mutual Fund, Discovery Global Opportunity Ltd, Societe Generale ODI, Authum Investment and Infrastructure Limited, Bandhan Infrastructure Fund, White Oak, Carnelian Bharat Amrikaal Fund, 360 ONE Equal Opportunity Fund, and The Jupiter Global Fund.

“The beardown effect from investors and institutions is simply a testament to their religion successful SpiceJet’s imaginable to rapidly standard and go a formidable subordinate successful India’s burgeoning aviation market. This fundraise marks a pivotal infinitesimal for SpiceJet arsenic we look to standard caller heights successful the aviation industry,” SpiceJet’s Chairman and Managing Director Ajay Singh said.

While overmuch of the Indian aviation manufacture charted a beardown betterment from the monolithic deed of the COVID-19 pandemic, SpiceJet stood retired arsenic an exception. The hose has been grappling with terrible fiscal distress, hitting its fleet, network, and consequently marketplace share.

SpiceJet’s home marketplace stock crashed to a caller debased of 2.3 per cent successful August arsenic the low-cost bearer continued to reel nether fiscal accent with a bulk of craft successful its fleet grounded owed to assorted reasons including disputes with lessors and method issues. SpiceJet had started the twelvemonth with a home marketplace stock of 5.6 per cent successful January.

SpiceJet presently has an operational fleet of conscionable astir 20 aircraft, with astir treble that fig grounded. The cash-strapped hose has been struggling financially, moving into unsmooth upwind with craft lessors and immoderate airports. The bearer has been irregular successful wage payments arsenic well, it is learnt. Given the distress, aviation information regulator Directorate General of Civil Aviation (DGCA) placed the hose nether enhanced surveillance from precocious August successful a bid to guarantee harmless formation operations.

Apart from money raise, the hose precocious announced a indebtedness restructuring statement with lessor Carlyle Aviation, nether which the second volition constitute disconnected implicit $40 cardinal successful lease arrears, and person different $30 cardinal of indebtedness into equity. The money rise and this indebtedness restructuring pact person ignited immoderate anticipation that the hose could get connected a way to betterment successful the coming months.