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Cash-strapped domestic carrier Spicejet plans to raise ₹3,200 crore through QIP, warrants and capital infusion by the promoter, the airline said in a presentation on Friday (September 6, 2024).
The funds will be utilised in taking back the grounded fleet in operations, liability settlement, new fleet induction and other general purposes, SpiceJet in the presentations.
“Spicejet plan to raise ₹2,500 crore through QIP and ₹736 crore through Previous Warrants and promoter infusion, the airline said in an investor presentation,” it said in a corporate presentation to investors ahead of its proposed capital infusion.
The proposed funds raised are subject to shareholders’ approval.
Ajay Singh-promoted SpiceJet had earlier in January this year, could raise only ₹1,060 crore through preferential issues against its ₹2,250 crore funding plan announced in December last year.
The airline attributed factors like reduction in fleet, and subsequent grounding, higher cost of working capital, escalating fixed costs, fixed rentals at airports, and outstanding statutory dues as the factors for its current problem.
According to the presentation, its operational fleet reduced to 28 planes in 2024 against 74 aircraft in 2019, while 36 aircraft remained on the ground due to the funding issue.
However, according to the live aircraft fleet tracking website, Planespotter.net, it had only 20 aircraft in operations as of September 5 and 38 on the ground.
It may also be noted that several of these aircraft are out of operation due to SpiceJet’s lessors and other vendors taking the airline to court for non-payment.
It also said that ₹3,700 crore dues are to be paid to the lessor, engineering & EDC liabilities, leading to the grounding of aircraft and ₹650 crore outstanding statutory dues.
SpiceJet also said that as the turnaround strategy, ungrounding and expansion of the fleet and enhanced presence on profitable routes, it will also focus on ancillary revenue and cargo, among others.
Published – September 06, 2024 05:15 pm IST