SpiceJet to raise Rs 2,250 crore in funds through equity shares, warrants

The board of directors of low-cost carrier SpiceJet has approved the proposal to raise fresh capital of Rs 2,250 crore through the issuance of equity shares. The board has approved the issuance of equity shares/equity warrants under a private placement basis.

"...considered and approved issue and allotment of equity shares and warrants on preferential basis, in one or more tranches in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (the “SEBI ICDR Regulation”) and relevant provisions of applicable laws and subject to approval of the shareholders of the Company and receipt of applicable regulatory approvals, as may be required to certain identified person(s) under non-promoter category as mentioned in Annexure – A," the company said in a filing. 

According to the filing, up to 32,08,05,972 equity shares of Rs 10 each will be issued. The company will also issue up to 13,00,00,000 warrants, each convertible at the option of the investor into an equivalent number of equity shares of Rs 10 each.

The proposed fund infusion will go a long way in enhancing product presence and market reach as well as provide a deep financial foundation, it added.

For the quarter ended September, the airline posted a net loss of Rs 428 crore.

In the year-ago period, the net loss stood at Rs 835 crore. 

Meanwhile, the company has announced its plan to soon list its securities on the National Stock Exchange of India Limited (NSE) in order to reach a wider investor base.

"This is to inform you that in order to reach wider investor base, the Company shall soon be listing its securities on National Stock Exchange of India Limited," SpiceJet's regulatory filing read.