SpiceJet Chairman Ajay Singh may sell 10-15% stake in airline to raise funds

SpiceJet's promoter and chairman, Ajay Singh, is considering offloading more than 10 percent of his stake in the financially troubled airline as part of a funding round expected to close by the end of September, according to sources cited by PTI.

The airlines, currently facing financial difficulties, legal challenges, and a reduced fleet, is looking to raise funds to address various obligations.

Singh, who serves as both Chairman and Managing Director, could potentially sell up to 15 percent of his shareholding in the airline, depending on favorable conditions, the news agency reported. This move is part of the airline’s proposed Qualified Institutional Placement (QIP) aimed at raising up to Rs 2,000 crore. Discussions with potential investors have already taken place both in India and internationally, according to the news agency's sources. The funding round is expected to be completed by the end of September.

The report further said it has learnt that the funds will be used to bring back grounded aircraft, settle liabilities, and for new fleet induction, among other general purposes.