SpiceJet Secures Approval for ₹22.5 Billion Capital Infusion from Bombay Stock Exchange

SpiceJet, one of India’s prominent low-cost carriers, has received in-principle approval from the Bombay Stock Exchange (BSE) for a substantial capital raising initiative. The airline confirmed this development in a filing dated January 15, 2024, following the green light from its shareholders in a meeting on January 10.

The approved capital raise, amounting to INR 22.5 billion rupees (approximately USD 271.5 million), involves the issuance of 318,300,000 equity shares and 130,000,000 warrants convertible into equity shares, each priced at INR 50 (USD 0.60). This influx of funds is earmarked for several critical areas aimed at boosting SpiceJet’s growth and operational resilience. These include network expansion, reactivation of grounded aircraft, and overall enhancement of the airline’s competitive edge in the Indian aviation market.

Ajay Singh, SpiceJet’s Managing Director, expressed optimism about this financial milestone, stating, “The in-principle approval from BSE for the fund infusion is a crucial step for SpiceJet as we embark on a journey to enhance our capabilities and strengthen our position in the Indian aviation sector. We believe the fund infusion will open new avenues for SpiceJet.”

SpiceJet experienced a challenging 2023, with significant financial constraints and approximately half of its fleet being out-of-service. According to ch-aviation fleets advanced data, 26 out of the airline’s 64 aircraft are currently inactive. The planned capital infusion is expected to facilitate the reactivation of a number of aircraft, including five Boeing 737-700s, one 737-700(BDSF), one 737-8, four 737-800s, two 737-900ERs, and fifteen DHC-8-Q400s.

This strategic move represents a significant effort by SpiceJet to stabilize and grow its operations, reflecting the airline’s commitment to overcoming recent challenges and playing a vital role in the expansion of the aviation sector in India. The approval from the Bombay Stock Exchange marks a pivotal step in the airline’s journey towards financial recovery and operational improvement.