SpiceJet seeks approval to raise Rs 3,000 crore - Details

SpiceJet is planning to raise approximately Rs 3,000 crore and has sought approval from shareholders. The capital raise is intended to address the airline’s critical need for cash to maintain operations. 

The company said that a special resolution will be put forth for voting to raise funds aggregating up to Rs 3,000 crore. The e-voting period will start on August 15 at 9 AM and conclude on September 13 at 5 PM, SpiceJet said in a filing dated August 14.

"the Company is seeking approval of the members of the Company by way of a special resolution through postal ballot, only by means of remote electronic voting, for the raising of funds aggregating up to Rs.3,000,00,00,000 (Rupees Three Thousand Crore only)," the company said in an exchange filing.

Earlier, there were reports that SpiceJet Chairman and Managing Director Ajay Singh may trim his shareholding in the airline by 10 per cent.

At the end of the June quarter, Singh was the single biggest shareholder in the airline with his family owning more than 43 per cent stake. 

Based on his current shareholding in the company, offloading a 10 per cent interest will still allow him to maintain his status as the largest shareholder and retain control of the company.

The airline, which has been facing multiple headwinds, has been looking to raise more funds. It had posted a standalone profit of Rs 119 crore in the three months ended March.

Earlier 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 issues in two tranches.