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SpiceJet
Representational image by Md. Shaifuzzaman Ayon via Wikimedia Commons

SpiceJet QIP: Board approves issue of 48.7 crore share allotment at Rs 61.80 per share

| @indiablooms | Sep 29, 2024, at 12:30 pm

New Delhi/IBNS: SpiceJet announced on Saturday (Sept. 21) that its board has approved the issuance and allotment of 48,70,12,986 equity shares to qualified institutional buyers at a price of Rs 61.60 per share, which includes a premium of Rs 51.60 per share.

This price reflects a Rs 3.19 discount on the floor price, amounting to a total of Rs 2,999.99 crore.

Following this allotment, the company's paid-up equity share capital will rise from Rs 7,94,67,27,170 (representing 79,46,72,717 shares) to Rs 12,81,68,57,030 (representing 1,28,16,85,703 shares), as stated in a regulatory filing.

This move comes after shareholders approved a plan last week to raise up to Rs 3,000 crore.

SpiceJet, which is currently operating with a limited fleet and facing financial and legal challenges, is seeking funds to address various obligations.

The airline has been dealing with multiple issues, including grounded aircraft and mounting financial pressures.

The raised funds will help cover statutory dues, which stood at Rs 601.5 crore as of Sept. 15.

These dues include Rs 297.5 crore for Tax Deducted at Source (TDS), Rs 156.4 crore for employees' provident fund, and Rs 145.1 crore for Goods and Services Tax (GST).

In addition to clearing statutory dues, the funds will be used to settle outstanding liabilities with creditors, including aircraft and engine lessors, engineering vendors, and financiers.

On Friday (Sept. 20), SpiceJet’s stock fell by 3.25 percent, closing at Rs 66.16 per share on the BSE, according to reports.

Also on Friday, the Supreme Court upheld a Delhi High Court order instructing SpiceJet to ground three aircraft engines due to missed payments to lessors.

A bench led by Chief Justice D Y Chandrachud, along with Justices J B Pardiwala and Manoj Misra, dismissed SpiceJet's appeal against the high court's September 11 ruling, affirming, "We will not interfere. It's a correct order."

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