SpiceJet
SpiceJet shares rise as airline clears GST dues and salaries after raising Rs 3,000 crore via QIP
Mumbai/IBNS: Shares of budget airline SpiceJet surged on Friday (Sept. 27) following the announcement that the low-cost carrier has cleared its Goods and Services Tax (GST) dues amounting to approximately Rs 71 crore.
This comes shortly after the airline raised Rs 3,000 crore through a Qualified Institutional Placement (QIP), according to reports.
In a statement, SpiceJet emphasized its commitment to financial discipline and regulatory compliance, stating, "SpiceJet has cleared all its GST dues."
The airline also recently cleared pending salary payments of Rs 80 crore, covering June to August salaries.
As of 11 am on Friday (Sept. 27), SpiceJet's stock on the BSE had risen by 1 percent, trading at Rs 62.42 per share.
Ajay Singh, SpiceJet's Chairman and Managing Director, commented, "Clearing all GST dues marks an important step in our ongoing efforts to maintain financial discipline and comply with regulations."
"These actions are in line with our commitment to deliver outstanding service to passengers and strategically prepare for the future," Singh added.
Earlier, on Tuesday (Sept. 24), SpiceJet announced an amicable settlement with Engine Lease Finance Corporation (ELFC), resolving a $16.7 million claim for an undisclosed, reduced amount.
This agreement represents another move towards improving SpiceJet's financial standing, reports said.
The QIP, launched on September 16 and closing on September 18, was met with overwhelming interest, being significantly oversubscribed.
This strong response highlighted investor confidence in the airline's growth potential.
SpiceJet plans to use the newly raised funds to bring grounded aircraft back into operation, acquire new planes, enhance its technology, and explore new markets, as per reports.
Earlier this month, the Gurugram-based airline revealed that it had been unable to pay statutory dues totaling Rs 427 crore between April 2020 and August 2024 due to financial constraints.
These unpaid dues comprised Rs 219.8 crore in tax deducted at source (TDS), Rs 71.33 crore in GST, and Rs 135.47 crore in provident fund (PF) contributions.
SpiceJet also disclosed that 36 of its 58 aircraft remain grounded, primarily due to defaulted payments to lessors, financial challenges impacting maintenance, and the lack of spare parts.
Additionally, the airline owes Rs 118.9 crore in employee salaries as of September 15, 2024, which it aims to clear using funds raised from the QIP.
SpiceJet also plans to use Rs 150.3 crore of the raised funds to settle airport dues, with the total amount owed standing at Rs 290 crore.
Furthermore, Rs 370 crore will be allocated for fleet expansion, according to reports.
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