SpiceJet to consider raising fresh capital via QIP on July 23

“We wish to inform you that a meeting of the Board of Directors of SpiceJet Limited will be held on July 23, 2024, inter-alia, to consider and approve raising fresh capital through issue of eligible securities to qualified institutional buyers by way of qualified institutional placement,” the airline said in a regulatory filing.

The fund-raising will be done under the provisions of the Sebi (Issue of Capital and Disclosure Requirements) Regulations 2018 and any other methods including by way of further issue. It is subject to regulatory and shareholder approvals.

Following the announcement, shares of the company rallied around 4% to the day’s high of Rs 58.

Earlier in the week, the airline reported a sixfold surge in its net profit to Rs 119 crore for the fourth quarter ended March 31, 2024. For FY24, SpiceJet significantly reduced its losses by nearly 73%, reporting a post-tax loss of Rs 409 crore compared to a net loss of Rs 1,503 crore in FY23.In January this year, SpiceJet received in-principle approval from BSE for a fund infusion of Rs 2,242 crore and raised Rs 1,060 crore under preferential issues in two tranches.Recently, the budget carrier ran into legal trouble after the Delhi High Court ordered the registration of a contempt case against SpiceJet Ltd’s directors for non-compliance with its July 2 order that directed the low-cost airline to return two Boeing aircraft and three aircraft engines to its lessor TWC Aviation Capital by July 8.