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regular-article-logo Tuesday, 05 March 2024

India's SpiceJet likely to raise $120 million-$144 million fresh capital to pay pending salaries

Budget carrier will consider raising capital through an issue of equity shares or convertible securities on a preferential basis on December 11

Reuters Bangalore Published 08.12.23, 09:27 AM
Representational image.

Representational image. File picture

India’s troubled domestic airline SpiceJet is likely to raise Rs 10-12 billion ($120 million-$144 million) in fresh capital to pay pending salaries and revive its grounded fleet of 25 aircraft, a TV channel reported on Thursday.

The budget carrier will consider raising capital through an issue of equity shares or convertible securities on a preferential basis on December 11, SpiceJet said in an exchange filing on Wednesday.

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Shares of the company jumped 20 per cent to a 16-month high of Rs 52.30, after the report.

SpiceJet did not immediately respond to a Reuters’ request for comment.

The carrier has been scrambling to raise funds and restore operations for a part of its fleet that has been grounded amid a string of weak quarterly results and fierce competition in the sector.

In August, SpiceJet told a court that it was “struggling to stay afloat”, as it was ordered to repay money to its former owner, Kalanithi Maran.

In September, the airline made a $1.5 million payment to Credit Suisse after India’s top court’s order in a separate case. The Supreme Court granted six months’ time to the company to clear arrears of $3 million in the subsequent hearing.

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