SpiceJet's QIP Draws Investment From Madhusudan Kela Among Top Investors

SpiceJet Ltd.'s qualified institutions placement has attracted investment from family offices of Madhu Kela, Akash Bhanshali, Sanjay Dangi, and Rohit Kothari, according to people familiar with the matter.

Other investors in the placement include Think Investments, Tata Mutual Fund, Discovery Fund, Plutus, and Jupiter Fund Management, the people cited above told NDTV Profit on Wednesday.

The development comes as SpiceJet seeks to enhance its financial stability and competitiveness in the Indian aviation market.

Priced at Rs 61.60 per share, the issue seeks to address financial and operational issues faced by the airline. The capital will cover liabilities, including Rs 3,700 crore owed to lessors, vendors, and suppliers, and Rs 650 crore in unpaid statutory dues. SpiceJet's fleet has reduced from 74 to 28 aircraft, with 36 grounded due to funding problems.

The company’s total debt exceeds Rs 4,300 crore, including Rs 3,700 crore in dues to lessors and engineering liabilities, and Rs 650 crore in statutory dues, according to its recent presentation. The management also cited rising fuel costs and payment delays as key challenges.

Shares of SpiceJet closed 6.3% lower at Rs 69.27 on Bombay stock exchange on Wednesday. That compared with 0.2% decline in the country's benchmark BSE Sensex. The scrip has returned 15% so far this year.

At present, only four analysts have rating on the airline stock, according to Bloomberg data. Of them, only have a 'buy' rating on the stock, while two have a 'hold' rating and one have a 'sell' rating. The analyst consensus estimates, tracked by Bloomberg was Rs 44, implying a potential downside of 36.3% from the last close.