SpiceJet shares fly as airline announces debt-equity swap with lessor, Rs 2,500-crore fundraise

SpiceJet share price: The airline's stock jumped on Monday after its board gave its nod to decisions such as raising of more than Rs 2,500 crore through a qualified institutional placement (QIP), selling its cargo business to subsidiary SpiceXpress and Logistcis, and a debt-to-equity swap with aircraft lessor Carlyle Aviation Partners.

SpiceJet shares soared more than six per cent to Rs 42.2 apiece on BSE after the announcements.

Also Read: SpiceJet Q3 Results: Net profit soars over 2.5 times aided by strong demand; shares fly high

Here's a summary of key announcements made by the carrier: 

SpiceJet: Fundraise through qualified institutional placement (QIP)

The SpiceJet board gave nod to raising fresh capital worth up to Rs 2,500 crore through issuance of shares to qualified institutional buyers (QIBs, according to a regulatory filing.

SpiceJet: Slump sale of cargo unit

The aviation company entered into a business transfer pact with its subsidiary, SpiceXpress and Logistics Private Limited (SXPL), to transfer its cargo business undertaking as a going concern on a slump sale basis.

Also Read: SpiceJet begins flight services from Manohar International Airport in Goa to these cities

“The consideration for said transfer of cargo business undertaking shall be discharged by SXPL by the issuance of securities in the combination of equity shares and Compulsorily Convertible Debentures (‘CCDs’) to the company for an amount of Rs 2,555.77 crore," said SpiceJet. 

SpiceJet: Restructuring deals with aircraft lessor

SpiceJet's board approved a debt-equity swap with aircraft lessor Carlyle Aviation Partners.

SpiceJet said it will issue fresh equity on a preferential basis to Carlyle Aviation after converting existing lease liabilities equivalent to up to $29.5 million at Rs.48 apiece or a SEBI-determined price, whichever is higher.

Also Read: India's domestic air passenger traffic nearly doubled to 1.25 crore in January: DGCA data

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