SpiceJet raises Rs 316 cr from investors in second tranche, total goes up to Rs 1,060 crore

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NEW DELHI: Promoter Ajay Singh-led airline SpiceJet has raised Rs 316 crore from investors in its second tranche of capital infusion with the total fund infusion going up to Rs 1,060 crore.

“SpiceJet has raised an additional Rs 316 crore, bringing the total investments raised to Rs 1,060 crore under its preferential issue. The combined sum reflects strong investor confidence in SpiceJet’s future and unlocks exciting opportunities for the company”, a spokesperson for SpiceJet said in a brief statement.

On January 27, SpiceJet completed raising the first tranche of capital infusion worth Rs 744 crore through the allotment of securities on a preferential basis. It reportedly plans a Rs 22.50 billion fundraising effort by selling shares and warrants.

SpiceJet, which has been facing multiple headwinds, is of the view that the raised funds are expected to play a pivotal role in financing operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements.

The fund infusion will open new avenues for SpiceJet, resulting in a more cash-efficient operation, and expanded fleet and network, Singh had said. In its latest move, aiming to save about Rs 100 crore on an annual basis, low-cost airline SpiceJet is set to lay off at least 1,000 employees.

On February 13, a spokesperson of the airline SpiceJet confirmed that the manpower rationalisation was part of its cost-cutting strategy, besides ensuring profitable growth. The airline, which was launched in 2005, currently has around 9,000 employees and 30 planes, 10 of which are wet-leased. In the pre-pandemic year 2019, the airline had a fleet of 118 planes and more than 15,000 employees.

Meanwhile, SpiceJet reduced its net loss to Rs 428 crore in Q2 FY2024, a significant improvement from the net loss of Rs 835 crore in Q2 FY2023.SpiceJet operates about 250 daily flights to 48 destinations within India and to international destinations. Its fleet is a mix of aircraft, including the Boeing 737 Max, Boeing 700 and Q400s. (ANI)

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