SpiceJet to raise Rs 2,250 crore through issuance of equity shares
To issue 32.08 crore equity shares at ₹Rs 50 per share
To issue 32.08 crore equity shares at ₹Rs 50 per share
To issue 32.08 crore equity shares at ₹Rs 50 per share
To issue 32.08 crore equity shares at ₹Rs 50 per share
The board of crisis-hit SpiceJet Ltd, on Tuesday, approved raising of Rs 2,250 crore through the issuance of equity shares and equity warrants under a private placement basis.
According to media reports, SpiceJet will issue 32.08 crore equity shares at ₹Rs 50 per share, nearly 20 per cent discount from today's high of Rs 63. The shares of the company closed at Rs 58.04 at the end of the trading day.
The board of the company has also approved the issue of 13 crore convertible warrants at Rs 50 per warrant.
The proposed fund infusion will go a long way in enhancing product presence and market reach as well as provide a deep financial foundation, the airline said in an exchanges filing.
"This is a significant fund raise and it is designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth in the dynamic aviation sector," CNBCTB18 quoted SpiceJet chairman & MD Ajay Singh as saying in a statement.
For the quarter ended September, the airline posted a net loss of Rs 428 crore. In the year-ago period, the net loss stood at Rs 835 crore.