Struggling-to-survive SpiceJet has finally got a fresh lifeline of over £225 million from new investors such as Elara India Opportunities Fund, Aries Opportunities Fund, Nexus Global Fund and Prabhudas Lilladher.
The action is anticipated to lessen the financial strain on the low-cost carrier supported by Ajay Singh, which has been unable to deposit its employees' statutory TDS and PF payments or even pay their salaries. It has a serious aircraft shortage as a result of months of nonpayment to stakeholders, such as engine and aircraft lessors, which has led to frequent flight cancellations. It has consequently had a negative influence on the on-time performance of a shortened schedule it has been running.
“This is a significant fund raise and it is designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth… will help us achieve our goal of building a world class airline in India. I personally thank all our stakeholders, all those who work for SpiceJet and all those who work with SpiceJet and who have patiently waited for this day. They have allowed us the time and opportunity to overcome a difficult phase in our history, and we are grateful to them,” Singh said in a statement after the airline’s board cleared the fund-raising.
The proposed preferential issue is for investors for issuance of shares and equity warrants aggregating to over £225 million, the airline said in a statement.