SpiceJet Said To Consider Rs 1,000-1,500 Crore Fundraise From Two Investors
Reports of promoter Ajay Singh in talks to raise funds had come out last year as well but a deal didn't fructify.
The cash-strapped SpiceJet Ltd.'s board will on Monday consider infusion of Rs 1,000-1,500 crore into the airline by two investors, according to a person aware of the matter, after its earlier fundraising efforts didn't yield results.
The second investor has shown interest in the airline, raising the deal's potential size to Rs 1,500 crore, the person said on the condition of anonymity. The person didn't reveal the identity of the investors.
The low-cost carrier postponed the board meeting to approve the September quarter results to Monday from Friday. It also said it will discuss and consider options for raising fresh capital through issue of equity shares and/or convertible securities on a preferential basis.
The company also announced on Monday that it will be listing its securities on National Stock Exchange ''soon" to reach a wider investor base.
It might not be easy for the airline to onboard new investors as it juggles poor operational performance, beaten-down financials and litigation.
Last year, media reports said that SpiceJet's promoter Ajay Singh was in talks with a middle-eastern carrier and a large Indian conglomerate for a stake sale to keep flying. However, the deal didn't fructify.
The airline's consolidated net profit stood at Rs 197.6 crore in the quarter ended June compared with a loss of Rs 783.7 crore a year earlier. The airline registered profit in the first quarter after reporting losses for the previous two quarters.
SpiceJet had a market share of 5% in the domestic market in October and it's on-time performance worsened to 58.1% in the month.
SpiceJet's shares rose as much as 7.3% before paring some gains to trade 4.7% higher at Rs 57.57 apiece at 10.24 a.m. against a 0.22% rise in the BSE Sensex.
