SpiceJet’s Fundraising Effort Attracts Notable Investors

SpiceJet, an Indian airline grappling with financial challenges, has successfully garnered significant interest in its recent fundraising campaign. The airline aimed to raise Rs 3,000 crore through a sale of shares to qualified institutional buyers. Despite facing financial and legal hurdles, as well as operating with a reduced fleet, the fundraising effort has been oversubscribed, indicating strong investor confidence.

The qualified institutional placement attracted several prominent investors, among them the family offices of Madhu Kela, Akash Bhanshali, Sanjay Dangi, Rohit Kothari, and Bandhan Bank. The airline, however, has not released an official statement regarding these investments. The need for funds arises primarily due to SpiceJet’s inability to meet statutory liabilities on a monthly basis, as revealed in the preliminary placement document.

As of mid-September, SpiceJet’s outstanding statutory dues amounted to Rs 601.5 crore. The airline has pending obligations, including Rs 297.5 crore toward the deposit of Tax Deducted at Source (TDS), Rs 156.4 crore for employees’ provident fund, and Rs 145.1 crore for Goods and Services Tax (GST). The funds raised through the placement are intended to address these obligations and other liabilities, such as those owed to creditors, including aircraft and engine lessors, engineering vendors, and financiers.

Despite the positive outcome of the fundraising campaign, SpiceJet’s share price fell by 6.27%, closing at Rs 69.10 on the BSE on Wednesday. This underscores the challenging environment the airline is navigating as it seeks to stabilize its financial footing and return to a path of growth.