Cash-strapped SpiceJet raises Rs 3,000 crore, gets good response for share sale
Cash-strapped airline SpiceJet has raised Rs 3,000 crore through the sale of shares to qualified institutional investors (QIP). The company told the stock markets that this money had been raised through the sale of 48.70 crore shares. These shares were sold at Rs 61.60 per share. Many foreign investors also participated in the QIP.
SpiceJet, a cash-starved airline, raised Rs 3,000 crore by selling shares to qualified institutional investors, also known as QIPs. The company informed the stock markets that the funds had been raised by the sale of 4870 lakh shares. These shares were sold at Rs 61.60 each. Many foreign investors bought into the QIP.
Several investors, including family offices and institutional funds, oversubscribed for the qualified institutional placement on Wednesday, according to people familiar with the situation. Madhu Kela, Akash Bhansali, Sanjay Dangi, and Rohit Kothari's family offices were among those that invested.
A comment could not be immediately solicited from the airline. "Due to our financial constraints, our company is not in a position to meet the statutory liabilities falling on us on a month-to-month basis," said the airline in the preliminary placement document related to raising Rs 3,000 crore.
According to the document, the airline has not made provident fund payments of more than Rs 135 crore from April 2020 to August 2023. The airline's total statutory dues as of September 15 stood at Rs 601.5 crore and the net proceeds from the placement will be used to repay the dues.
