Cash-strapped SpiceJet Announces Major Fundraising Plan

Domestic airline SpiceJet aims to raise over Rs 3,200 crore through various financial instruments and promoter capital infusion. The funds will be used for fleet ungrounding, liability settlement, and fleet induction. The plan, involving QIP and promoter infusion, awaits shareholder approval.

Domestic airline SpiceJet has unveiled plans to generate over Rs 3,200 crore through a mix of debt and equity instruments as well as capital infusion from the promoter, according to a corporate presentation by the airline.

The raised funds are earmarked for several critical areas, including fleet ungrounding, liability settlements, and the induction of new aircraft, the presentation outlined.

To achieve this, SpiceJet intends to secure Rs 2,500 crore through Qualified Institutional Placement (QIP) and Rs 736 crore via previous warrants and promoter infusion. The proposed fundraising, however, is subject to shareholders' approval, the airline clarified.

(With inputs from agencies.)