New Delhi: Sources suggest that Ajay Singh, the promoter and chairman of SpiceJet, might sell over 10 pc of shares in the airline during the upcoming funding round, set to conclude by the end of September. The low-cost airline, facing issues such as financial difficulties, legal disputes and aircraft groundings, plans to secure funds to fulfill its obligations.
One source mentioned that Singh might sell as much as a 15 per cent share in the airline under specific favorable conditions. As per the second source, Singh, who serves as both the Chairman and Managing Director, plans to sell approximately 10 pc of the airline's shares, with the possibility of increasing the amount. The airline has already secured a commitment of up to Rs 2,000 crore for the proposed QIP and is currently in talks with potential investors. According to insiders, discussions with investors have taken place both in India and abroad.
SpiceJet did not provide any official statement. The funding round is anticipated to finish by the end of September. In June 2024, the promoter group owned slightly more than 47 percent of the carrier, according to information from the BSE. SpiceJet, which owned 74 planes in 2019, is now flying approximately 20 aircraft.
On Friday, the airline announced its intention to raise Rs 3,200 crore through QIP, warrants, and capital infusion by the promoter, as stated in a presentation on the same day. The money will be used for bringing the grounded fleet back into service, settling liabilities, introducing new fleet, and other general needs. In an investor presentation, Spicejet announced its intention to raise Rs 2,500 crore through QIP and Rs 736 crore through previous warrants and promoter infusion. In January, SpiceJet could only secure Rs 1,060 crore through preferential issues out of its Rs 2,250 crore funding plan declared in December 2023.
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