India’s SpiceJet said on Tuesday it plans to raise 30 billion rupees (around $360 million) by selling securities, including shares, marking the troubled budget carrier’s latest attempt to shore up funds to restore full operations.
The company will issue shares to institutional investors, it said in an exchange filing, without disclosing the price at which they would be sold.
SpiceJet has been scrambling to raise funds amid a string of quarterly losses, compounded by some lessors taking the airline to court to settle unpaid dues and requesting the country’s aviation regulator to de-register their planes.
As of March-end, SpiceJet had cash and cash equivalents of 1.87 billion rupees, while its cash from operational activities was a negative 6.13 billion rupees.
Most top Indian carriers, from IndiGo to those under the Air India group, have inducted newer jets over the last year to cater to booming demand in one of the world’s fastest-growing aviation markets.
SpiceJet, however, has struggled to even return grounded jets to the sky, losing market share in the process, weighed down by its legal and financial troubles. At 4.2%, SpiceJet’s market share in the June quarter was below that of newest entrant Akasa Air’s 4.7% for only the second time since the latter began operations in mid-2022, data from India’s aviation regulator showed.
SpiceJet shares jumped as much as 7% to 58.65 rupees after the announcement. Its shares are down about 4% so far in 2024, compared to a 44% jump in market leader IndiGo’s shares.
Reuters