SpiceJet to consider raising fresh capital this week

No-frills carrier SpiceJet on Tuesday said that the company will consider issuing equity shares via preferential basis in a board meet this week on Friday, February 24, 2023 & mull upon conversion of outstanding liabilities. The company will also consider raising fresh capital via issue of securities to qualified institutional buyers.

“This is to inform you that the Board of Directors of the Company in its meeting scheduled to be held on February 24, 2023 (Friday), will discuss and consider, inter-alia, issuance of equity shares on preferential basis consequent upon conversion of outstanding liabilities into equity shares of the Company, subject to applicable regulatory approvals,” the domestic airline informed in an exchange filing today.

Further, the Board of Directors will also discuss and consider options for raising fresh capital through issue of eligible securities to qualified institutional buyers, subject to applicable regulatory approvals, SpiceJet added.

Shares of SpiceJet Ltd were trading more than a per cent lower at ₹38 apiece on the BSE in Tuesday's early deals. The airline stock has declined more than 40% in a year's period.

India's domestic air passenger traffic nearly doubled to 1.25 crore in January compared to 64.08 lakh recorded in the year-ago period, according to official data released on Monday. The number of domestic passengers flown by low-cost airline SpiceJet stood at 9.14 lakh, according to Directorate General of Civil Aviation (DGCA).

SpiceJet is yet to announce its earnings for the third quarter ended December 2022 (Q3 FY23). Though, it reported a consolidated net loss of ₹833 crore for the quarter ended September 2022 (Q2) as compared to loss of ₹570.5 crore in the year-ago quarter. The consolidated revenue from operations rose by 45% to ₹1954 crore from ₹1345 crore in the year ago period.