SpiceJet gets over Rs 900 crore funding, focus on cost-cutting measures
The latest installment came recently after its Chairman and Managing Director Ajay Singh infused funds into the airline.
Crisis-ridden SpiceJet said on Thursday that its board was considering options for raising fresh capital through the issuance of equity or convertible securities on a preferential basis.
The Company’s board will meet on December 11 to consider options to raise fresh capital, according to an exchange filing.
Following this development, the airline’s share price surged by 20 per cent on the BSE on Thursday morning.
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Options to raise fresh capital could include the issue of equity shares and / or convertible securities on a preferential basis.
The airlines said that the proposals considered will be subject to approval of the company’s shareholders and appropriate regulatory approvals as required.
Last month, SpiceJet told the Delhi High Court that it was struggling to stay afloat after the court mandated the airline to make a payment to its former owner, Kalanithi Maran, for outstanding dues.
The airline argued in court that compelling it to make cash payment would affect the involved parties. It emphasized that none of the stakeholders would benefit if the budget airline were to enter insolvency.
Last week, SpiceJet announced that its board will meet on Friday, December 8 to consider financial results for the September quarter.
Between January to September, SpiceJet’s market share stood at 4.4% while its competitor IndiGo’s remained the leader with share of 63.4%.
On Wednesday, a SpiceJet flight to Mumbai was delayed by 14 hours from Bengaluru and around 250 passengers were left stranded at the Kempegowda International Airport
The scheduled departure of the flight SG-385 was at 5 am, but it was rescheduled to 12 pm and then 3 pm and eventually took off at 8:30 pm on Wednesday.
The passengers were left frustrated and infuriated at the delay and questioned the authorities as to what had happened. They were informed that the delay in departure was because of a technical glitch.
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