INSUBCONTINENT EXCLUSIVE:
Spicejet (Photo: Shutterstock)3 min read Last Updated : Sep 21 2024 | 11:05 PM IST
SpiceJet has raised Rs 3,000 crore through sale of
shares to qualified institutional buyers, providing a much-needed tailwind for the struggling airline.
Foreign entities, including Societe
Generale - ODI, Goldman Sachs (Singapore) Pte - ODI, Nomura Singapore Ltd ODI and Discovery Global Opportunity (Mauritius) Ltd are among the
investors who have been allotted shares under the airline's Qualified Institutional Placement (QIP) that was oversubscribed.
The airline's
fundraising committee, on September 20, approved the allotment of more than 48.70 crore shares at a price of Rs 61.60 apiece to the more
crore.
"Pursuant to the allotment of equity shares in the Issue, the paid-up equity share capital of the company stands increased from Rs
7,946,727,170 consisting of 794,672,717 equity shares to Rs 12,816,857,030 consisting of 1,281,685,703 equity shares," the filing made to
the BSE on Saturday said.
SpiceJet, which has been flying for 19 years, is facing multiple headwinds and the latest fundraise will help
the carrier to clear various dues.
Among others, the proceeds will be used for settling liabilities of creditors, including aircraft and
engine lessors, engineering vendors and financiers.
Five allottees each have received more than five per cent of the shares offered in the
They are Authum Investment and Infrastructure Ltd (9.33 per cent), Discovery Global Opportunity (Mauritius) Ltd (8.33 per cent), Troo
Capital (6.67 per cent), Societe Generale - ODI (6.04 per cent) and Goldman Sachs (Singapore) Pte - ODI (5.33 per cent), as per another
regulatory filing.
Earlier, sources said SpiceJet promoter Ajay Singh might be selling more than 10 per cent stake in the airline.
The
shareholding pattern, post the issue, will be submitted in due course by the airline to the BSE.
While the latest funding will help
SpiceJet in the near term, the airline will have to ensure stability of operations in the long term and improve its financial position amid
intense competition in the airline segment.
In its preliminary placement document, the airline had said that due to financial constraints,
it has not been able to fulfil the statutory liabilities accruing on us on a month-to-month basis.
As per the document, the airline has
not made provident fund payments to the tune of over Rs 135 crore from April 2020 to August 2023, as per the document.
The carrier's
statutory dues totalled Rs 601.5 crore as of September 15 and net proceeds from the placement will also be utilised towards clearing the
dues.
Of the total amount, Rs 297.5 crore is towards deposit of Tax Deducted at Source (TDS), Rs 156.4 crore related to deposit of
employees' provident fund, and Rs 145.1 crore pertains to Goods and Services Tax (GST).(Only the headline and picture of this report may
have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)First Published: Sep 21
