SpiceJet considers fund raising via QIP - Check Details

Low-budget carrier SpiceJet has informed exchanges that its board will meet on July 23 to consider raising fresh capital through qualified institutional placement (QIP) basis.

"The Board of Directors of the Company is scheduled on 23/07/2024, inter alia, to consider and approve to consider and approve raising fresh capital through issue of eligible securities to qualified institutional buyers by way of qualified institutional placement under the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018 and any other methods including by way of further issue, in accordance with the relevant provisions of applicable laws and subject to approval of the shareholders of the Company and other applicable regulatory and contractual approvals, as may be required.

In January this year, SpiceJet received in-principle approval from the BSE for a fund infusion of Rs 2,242-crore and raised Rs 1,060 crore under preferential issue in two tranches.

The Gurugram-based airline announced a multi-fold jump in standalone profit after tax (PAT) to Rs 119 crore for the January-March quarter of 2023-24, over Rs 16.85 crore PAT in the corresponding quarter of the previous year.

For the full fiscal year 2023-24, the airline posted a loss of Rs 409.43 crore. It had reported a loss of Rs 1,503 crore in FY23.

For the December quarter, SpiceJet reported a loss at Rs 301.45 crore. SpiceJet had posted a profit of Rs 106.82 crore in FY23.

The airline has been struggling to keep afloat for many quarters now and has reportedly not deposited the Employee Provident Fund Contributions to its 11,581 staff since January.

As on July 19, as many as 33 aircraft -- 15 Boeing 737 and 18 regional jets Q400 -- were on ground, owing to multiple reasons, as per the aircraft fleet tracking website planespotter.Net.

SpiceJet has a total of 60 planes, which include 32 Boeing 737 and 24 Q400.

Besides, it also has two Airbus 340 and two Airbus A320, which are on wet-lease.