Spice Jet: Low-cost airline SpiceJet on Friday (January 26) said it has managed to raise Rs 744 crore in its first round of investment. It is to be noted that this fund has been raised through preferential allotment of shares and warrants.
The airline informed that its board of directors in its meeting held on January 25 had given permission to allot 5.55 crore equity shares to a total of 54 customers. Along with this, the airline’s board has also approved the issuance of a total of 9.33 crore equity shares to Elara India Opportunities Fund Limited and Silver Stallion Limited.
Airlines will raise more funds.
Airline SpiceJet, which has been facing financial crisis for a long time, is trying to raise funds through various means. The company is once again looking to raise the next round of funds through warrants and equity. After the company raised funds worth Rs 744 crore on Friday, SpiceJet Chairman and MD Ajay Singh said, “We are grateful to our investors who have placed their trust in us.” The fund will help the airline expand its operations further.
SpiceJet is facing shortage of funds.
SpiceJet has been struggling with cash crunch for a long time and currently only one fleet of the company is operational. This has an impact on the timing of airline flights. 45% of SpiceJet flights are running late.
Talking about its financial position, the company’s loss in the second quarter of the financial year 2023-24 has come down to Rs 431.54 crore. The company’s loss in the same quarter last year was Rs 837.8 crore. Earlier, the company had posted a profit of Rs 197.53 crore in the April-June quarter.
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