SpiceJet QIP: Board okays 48.7 crore share allotment to raise Rs 3,000 crore
With this allotment, the airline's paid-up equity share capital will increase from Rs 794.67 crore, representing 79.46 crore equity shares, to Rs 1,281.68 crore, representing 128.16 crore equity shares.
Struggling low-cost carrier SpiceJet on Saturday said its board has approved the issuance and allotment of 48.70 crore equity shares to qualified institutional buyers at Rs 61.60 per share.
The total amount raised from the issue will be Rs 2,999.99 crore. The low-cost airline is seeking to raise funds to address operational challenges, including a reduced fleet and various legal and financial hurdles.
In a regulatory filing, the airline said the fund-raising committee has “approved the issue and allotment of 48,70,12,986 Equity Shares to eligible qualified institutional buyers at the issue price of Rs 61.60 per Equity Share at a premium of Rs 51.60 (which includes a discount of Rs 3.19 per Equity Share (4.92 per cent of the floor price… aggregating to Rs 2,999,99,99,937.60.”
With this allotment, the airline's paid-up equity share capital will increase from Rs 794.67 crore, representing 79.46 crore equity shares, to Rs 1,281.68 crore, representing 128.16 crore equity shares.
“Pursuant to the allotment of Equity Shares in the Issue, the paid-up Equity Share capital of the Company stands increased from Rs 7,94,67,27,170 consisting of 79,46,72,717 Equity Shares to Rs 12,81,68,57,030 consisting of 1,28,16,85,703 Equity Shares,” said the low-cost carrier.
The announcement follows shareholder approval last week for a capital raise of up to Rs 3,000 crore.
SpiceJet's statutory dues were Rs 601.5 crore as of September 15. The airline's shares dropped 3.25 per cent to closing at Rs 66.16 on Friday.
SpiceJet hit a new low with its market share shrinking by 80 bps to 2.3 per cent (month-on-month) in August, largely due to financial woes and increased grounding, according to the report by Emkay Global Financial Services.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Centre set to rename Chhatrapati Shivaji Maharaj Terminus, Churchgate, Bandra, & other 2 dozen Mumbai Metro stations
SBI Senior Citizen 3-year FD vs Post Office 3-year FD: Which will give higher returns on investments of Rs 1 lakh, Rs 2 lakh, Rs 3 lakh and Rs 4 lakh
Nomura double upgrades Vodafone Idea to 'buy', says worst now behind as AGR overhang concludes; sees 45% potential gains
SBI Amrit Vrishti FD: How much maturity amount you will get on Rs 1.5 lakh, 2.5 lakh, 3.5 lakh, 4.5 lakh and Rs 5.5 lakh investments under this guaranteed return scheme
15x15x15 Formula: How your Rs 15,000 SIP investment may help you build over Rs 1 crore corpus; see calculations
06:59 PM IST