New Delhi: SpiceJet, one of India's prominent airlines, has announced its intention to raise $250 million (approximately Rs 2,085 crore) by mid-August to revitalize the airline's financial standing.
As per reports, Ajay Singh, the chairman and managing director of SpiceJet, made this announcement on Wednesday, highlighting the significance of this fundraising initiative in clearing the airline's balance sheet hurdles.
In recent quarters, SpiceJet has been grappling with a cash crunch, compounded by various legal battles concerning unpaid dues to aircraft lessors, engine lessors, lenders, and former promoter Kalanithi Maran. The airline's shareholders had earlier sanctioned the issuance of equity and warrants for raising Rs 2,241 crore, of which Rs 1,060 crore has already been raised.
Singh also disclosed that one round of fundraising had taken place 2-3 months ago, with plans for another round in the next couple of months to secure an additional $250 million.
Over the past five years, SpiceJet's network has witnessed a reduction of approximately 70 percent, with the carrier currently operating 1,180 flights per week, according to aviation analytics firm Cirium.
Singh, speaking at the CAPA India Aviation Summit 2024, expressed optimism about the impact of this fundraising endeavor, stating, "That will set us on the path of growth. We have got $150 million. We are going to raise another $250 million. We expect to do it by mid-August." He further emphasized the airline's determination to "clean its balance sheet" over the next two quarters.
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