SpiceJet has successfully raised Rs 3,000 crore through a Qualified Institutional Placement (QIP), providing a much-needed lifeline for the struggling airline.
The share sale, which involved over 48.70 crore shares priced at Rs 61.60 each, attracted significant investments from major foreign entities such as Societe Generale, Goldman Sachs (Singapore), Nomura Singapore, and Discovery Global Opportunity (Mauritius). The QIP was oversubscribed, reflecting strong confidence from investors.
On 20 September, the airline’s fundraising committee approved the allotment, which increases its paid-up equity share capital significantly. This financial boost comes at a critical time for SpiceJet, which has been grappling with multiple operational headwinds since its inception 19 years ago. The proceeds from the QIP will be allocated towards settling various debts, including outstanding payments to aircraft and engine lessors, engineering vendors, and financiers.
Among the investors, five received notable allocations, with Authum Investment and Infrastructure Ltd holding the largest stake at 9.33 per cent. The recent funding will help the airline address immediate financial obligations, though it must also work towards stabilizing operations and enhancing its financial position amid fierce competition in the aviation sector.
Despite this infusion of capital, SpiceJet faces ongoing challenges. According to preliminary documents, the airline has struggled to meet its statutory liabilities, failing to make provident fund payments amounting to over Rs 135 crore since April 2020. As of mid-September, SpiceJet’s total statutory dues stood at approximately Rs 601.5 crore, which include significant amounts owed for Tax Deducted at Source (TDS), employees' provident fund deposits, and Goods and Services Tax (GST).
