India’s SpiceJet explores fresh capital raise

SpiceJet (SG, Delhi Int’l) is exploring ways to raise more capital through the issuance of shares or a debt instrument, the low-cost carrier declared in a stock exchange filing on June 27.

It said that the board of directors would discuss in a meeting this week, among other things, “options for raising fresh capital through the issue of equity shares/debt instrument on a preferential/qualified institutions placement basis.”

Such options would be subject to the approval of SpiceJet’s shareholders and receipt of any applicable regulatory approvals, it added.

The embattled budget carrier, which has faced a flurry of court cases in recent months over alleged unpaid debts, and which has deferred some staff wage payments, in February, reported a third-quarter net loss of INR569.5 million rupees (USD7.66 million) for the three months to December 2020.

The results for the quarter ending March 31, 2021 – and consequently for the full financial year ending the same date – are due to be announced on June 30.

Amid the continuing uncertainty surrounding a devastating wave of the coronavirus pandemic in India, the board of InterGlobe Aviation, parent of SpiceJet rival IndiGo Airlines (6E, Delhi Int’l), approved the option of raising its own fresh equity on May 10. It aims to raise INR30 billion (USD404 million) by way of a qualified institutions placement (QIP).