Shares of the low-cost airline gained 10 percent on Monday as the company raised Rs 3,000 through a share sale to qualified institutional buyers, providing a much-needed tailwind for the struggling airline. The counter opened at Rs 67.94, a gain of 2.69 percent from the previous close of Rs 66.16 on the BSE. It also gained a touch high of Rs 72.8 – a surge of 10.04 percent.
The stock gained after four days of consecutive declines and outperformed the sector by 6.38 percent.
Meanwhile, foreign businesses, including Societe Generale – ODI, Goldman Sachs (Singapore) Pte – ODI, Nomura Singapore Ltd ODI and Discovery Global Opportunity (Mauritius) Ltd are among the investors who were given shares under the Qualified Institutional Placement (QIP). of the airline. that was oversubscribed.
The airline’s fundraising committee, on September 20, approved the allotment of over 48.70 crore shares at a price of Rs 61.60 each to over 80 QIP participants, according to an official filing.
The total amount of securities issued is around Rs 3,000 crore.
“Following the issue of equity shares, the paid up share capital of the company has increased from Rs 7,94,67,27,170 comprising 79,46,72,717 shares to Rs 12,81,68,57,030 comprising 1,28 shares ,16,85,703,” said a report made to the BSE on Saturday.
SpiceJet, which has been flying for 19 years, is facing many headwinds and the latest fundraising will help the carrier clear various payments.
Among other things, the proceeds will be used to pay debts to creditors, including aircraft and engine lessors, engineering vendors and financiers.
Five allottees each received more than five percent of the shares offered in the QIP. Authum Investment and Infrastructure Ltd (9.33%), Discovery Global Opportunity (Mauritius) Ltd (8.33%), Troo Capital (6.67%), Societe Generale – ODI (6.04%) and Goldman Sachs (Singapore) Pte. – ODI (5.33 percent), as another regulatory fill.
Earlier, sources said that SpiceJet promoter Ajay Singh may be selling more than 10 percent stake in the airline.
The shareholding pattern, after its issuance, will be submitted later by the airline to the BSE.
While the latest funding will help SpiceJet in the near term, the airline will need to ensure long-term operational stability and improve its financial position amid intense competition in the aviation sector.
In its initial filing, the airline had said that due to financial problems, it could not meet its monthly legal obligations.
According to the document, the airline has not paid the provident fund amounting to Rs 135 crore from April 2020 to August 2023, according to the document.
The carrier’s legal tender has reached Rs 601.5 crore as of September 15 and the entire amount from the placement will be used to clear the fees.
Of the total, Rs 297.5 crore is related to Tax Deducted at Source (TDS) deposits, Rs 156.4 crore is related to employee provident fund deposits, and Rs 145.1 crore is related to Goods and Services Tax (GST).
With agency input