SpiceJet Secures Rs 3,000 Crore Investment From Institutional Investors

SpiceJet Secures Rs 3,000 Crore Investment: SpiceJet has raised Rs 3,000 crore from institutional investors. A big boost for the struggling airline.

Foreign entities like Societe Generale - ODI, Goldman Sachs (Singapore) Pte - ODI, Nomura Singapore Ltd ODI and Discovery Global Opportunity (Mauritius) Ltd are among the investors who have been allotted shares under the airline’s QIP which was oversubscribed.

The fundraising committee on September 20 approved the allotment of 48.70 crore shares at Rs 61.60 each to more than 80 QIP participants, as per the filing. Total amount of securities issued is Rs 3,000 crore.

"Pursuant to the allotment of equity shares in the Issue, the paid-up equity share capital of the company stands increased from Rs 7,946,727,170 consisting of 794,672,717 equity shares to Rs 12,816,857,030 consisting of 1,281,685,703 equity shares," the filing made to the BSE on Saturday said.

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SpiceJet has been flying for 19 years and is facing multiple challenges and this fundraise will help the airline to settle its dues.

Among others, the proceeds will be used to settle liabilities of creditors including aircraft and engine lessors, engineering vendors and financiers.

Five allottees have got more than 5% of the shares offered in the QIP. They are Authum Investment and Infrastructure Ltd (9.33%), Discovery Global Opportunity (Mauritius) Ltd (8.33%), Troo Capital (6.67%), Societe Generale - ODI (6.04%) and Goldman Sachs (Singapore) Pte - ODI (5.33%), as per another filing.

Earlier, it was said that SpiceJet promoter Ajay Singh might be selling over 10% stake in the airline.

Shareholding pattern post issue will be filed by the airline with BSE later.

While this fundraise will help SpiceJet in short term, the airline will have to ensure stability of operations in long term and improve its financials in a highly competitive airline space.

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In the preliminary placement document, the airline had said that due to financial constraints, we have not been able to settle our statutory liabilities on a month to month basis.

As per the document, the airline has not made provident fund payment of over Rs 135 crore from April 2020 to August 2023.

Statutory dues as of September 15 are Rs 601.5 crore and net proceeds from the placement will also be used to settle the dues.

Out of this, Rs 297.5 crore is for TDS, Rs 156.4 crore for employees’ provident fund and Rs 145.1 crore for GST.

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