Low-cost airline SpiceJet Ltd. has accumulated Rs 794 crore in pending statutory dues since assessment year 2010, according to its latest exchange filing.
The airline owes a total of Rs 426.8 crore in unpaid Tax Deducted at Source, Goods and Services Tax, and Provident Fund contributions, as per the company's preliminary placement document. Additionally, a disputed amount of Rs 367 crore was disclosed in the exchange filing on Tuesday.
Of the total dues, Rs 135.5 crore is pending towards Provident Fund payments.
In an effort to address its financial and operational challenges, SpiceJet had launched a Qualified Institutional Placement to raise up to Rs 3,000 crore, including a greenshoe option of Rs 1,500 crore. The QIP, which commenced on Tuesday, was priced at a 21% discount to the closing price of Monday.
Following the QIP launch, SpiceJet’s stock dropped by 5.23%, closing at Rs 73.72 per share on the Bombay Stock Exchange On Tuesday. The QIP priced at Rs 61.60 per share is expected to dilute 38% of post-issue equity.
The capital raised through this initiative will be used to address SpiceJet's outstanding liabilities, which include Rs 3,700 crore owed to lessors, vendors, and suppliers, along with Rs 650 crore in unpaid statutory dues. The airline's fleet has been significantly reduced, shrinking from 74 aircraft to just 28, with 36 planes grounded due to funding issues.
RECOMMENDED FOR YOU
Bata India Q2 Results: Profit Up 53% To Rs 52 Crore
Nov 04, 2024
Rise With Profit: US Economic Data, India's Fiscal Deficit, TRAI Extension
Oct 31, 2024
SpiceJet Set To Raise Rs 3,000 Crore Via QIP Closing Today
Sep 18, 2024
SpiceJet Shareholders Approve Rs 3,000-Crore Fundraise For Financial, Legal Woes
Sep 13, 2024
POPULAR