SpiceJet shareholders approve plan to raise funds via issue of shares, warrants

SpiceJet also adopted the financial results for the period ending March 31, 2023

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26 Aug, 2025 12:21

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The shareholders of SpiceJet have approved the plan to raise funds via the issuance of equity shares and warrants, the carrier said in a regulatory filing made following its annual general meeting (AGM) on January 10.

The shareholders voted in favour of the "issue and allotment of equity shares on preferential basis", and the "issue and allotment of warrants with an option to apply for and be allotted equivalent number of equity shares on preferential basis", as per the exchange filing.

Ahead of the AGM, it was reported that the beleaguered airline planned to seek nod from stakeholders to raise Rs 2,250 crore to fuel its expansion and revitalisation. The filing, however, did not mention the targeted amount of fundraise towards which the shareholders have given their approval.

The airline's board had, last month, given its nod to the proposal to raise Rs 2,250 crore, through the issuance of up to 130 million convertible warrants and 320.8 million fresh equity shares at an issue price of Rs 50 each.

Also Read: SpiceJet has exclusive rights for Lakshadweep, will launch flights to Agatti Island soon: Ajay Singh

Ahead of the SpiceJet AGM, CNBC-TV18 had reported citing sources that Carlyle Aviation Partners, which has a strong presence in the aviation investment sector, is interested in investing in the low-cost Indian airline.

While SpiceJet was yet to respond to the news, the exchanges have sought a clarification.

Notably, Carlyle Aviation currently holds a 7 percent stake in SpiceJet, while promoter Ajay Singh, retains a substantial 57 percent stake.

Cash crunch

The budget carrier has run dry on cash as it grapples with a number of legal cases over non-payment of dues, involving its former promoters as well as aircraft lessors. In July, the company said that Singh would infuse Rs 500 crore in lieu of fresh equity shares or convertible instruments or both.

The improving profitability of India’s aviation sector, coupled with the bankruptcy-led exit of Wadia Group’s budget carrier GoFirst, has improved SpiceJet’s prospects to repay debt and manage finances.

In August 2023, SpiceJet raised its market share narrowly, beating Akasa Air, which saw an overall jump in passenger traffic by 30 percent over last year.

Cash infusion

Singh pumped Rs 500 crore into the company in August. "I firmly believe in the potential of our airline, and I am pleased to have contributed to its growth by infusing Rs 500 crore into the company. This infusion will help bolster our efforts to revive our grounded planes, for which we have been working tirelessly, strengthening our fleet and expanding our cargo operations," he had said in a press release.

The cash-starved airline has only a part of its fleet operational with poor one-time performance from nearly 40-45 percent flight delays everyday.

Market experts say that SpiceJet had a large number of denied boarding as the airline overbooked many flights, or cancelled and combined flights which led to overbooking.

According to data from the Directorate-General of Civil Aviation (DGCA), between May 2023 and October 2023, 189,634 passengers were affected by delays of beyond two hours on SpiceJet's flights. The airline paid Rs 3.78 crore in compensation to the passengers in this period.

During the same period, SpiceJet wrongly denied boarding to 991 passengers and paid Rs 18.11 lakh in damages. Similarly, around 16,131 passengers were affected by flight cancellations and the airline paid Rs 1.33 crore as compensation.

Despite all the headwinds, the airline's stock zoomed around 70 percent in the last six months of 2023. In the trading session on January 10, the stock rallied 5 percent during in anticipation of the shareholders' nod to the fundraise plan. The scrip settled at Rs 65.44 apiece on the BSE, up 5.21 percent as against the previous day's close.