Delhi Delhi : Struggling low-cost airline SpiceJet on Saturday said its board has approved the issuance and allotment of 48.70 crore equity shares at Rs 61.60 per share to qualified institutional buyers. The total amount raised through the issue will be Rs 2,999.99 crore. The low-cost airline is trying to raise funds to address operational challenges, including depleted fleet and various legal and financial constraints. In a regulatory filing, the airline said the fund raising committee has “approved the issuance and allotment of 48,70,12,986 equity shares to qualified institutional buyers at an issue price of Rs 61.60 per equity share at a premium of Rs 51.60 (including a discount of Rs 3.19 per equity share (4.92 per cent of the floor price… aggregating to Rs 2,999,99,99,937.60.”
Advertisement With this allotment, the paid-up equity share capital of the airline will increase from Rs 794.67 crore to Rs 1,281.68 crore, representing 128.16 crore equity shares. “The issue of equity shares takes the paid-up equity share capital of the company to Rs 12,81,68,57,030 from Rs 7,94,67,27,170, to Rs 12,81,68,57,030, representing 1,28,16,85,703 equity shares,” the low-cost airline said. The announcement comes after shareholders last week approved a capital raise of up to Rs 3,000 crore. SpiceJet's statutory dues stood at Rs 601.5 crore as of September 15.
Shares of the airline closed 3.25 per cent lower at Rs 66.16 on Friday. According to a report by Emkay Global Financial Services, SpiceJet's market share fell 80 basis points to 2.3 per cent (month-on-month) in August, hitting a new low. This was mainly due to the financial crisis and increased grounding of aircraft.
Comments are closed.