SpiceJet Takes Flight With QIP Allotment: Board Greenlights QIP Of 48.7 Crore Shares At ₹61.60 Each Amid Financial Turbulence
The apex court of the country on Friday (September 20) upheld a Delhi High Court order that directed the airline to ground three aircraft engines for failing to make payments to lessors.
SpiceJet Takes Flight With QIP Allotment: Board Greenlights QIP Of 48.7 Crore Shares At ₹61.60 Each Amid Financial Turbulence | File photo
SpiceJet, the embattled low-cost carrier on Saturday (September 21) through an exchange filing announced that the company that its board has approved the issuance and allotment of 48.7 crore equity shares to qualified institutional buyers at a price of Rs 61.60 per share.
This includes a premium of Rs 51.60 per share, with a slight discount of Rs 3.19 compared to the floor price. The total amount raised through the issuance stands at a whopping Rs 2,999.99 crore.
"Pursuant to the allotment of Equity Shares in the Issue, the paid-up Equity Share capital of the Company stands increased from Rs 7,94,67,27,170 consisting of 79,46,72,717 Equity Shares to Rs 12,81,68,57,030 consisting of 1,28,16,85,703 Equity Shares. The shareholding pattern of the Company, before and after the Issue, will be submitted along with the listing application in the format specified in Regulation 31 of the SEBI Listing Regulations," said the company in the regulatory filing.
Meeting Financial Obligations
SpiceJet’s financial situation has been precarious, with mounting debts and legal challenges adding to the pressure.
As of September 15, the air carrier had unpaid statutory dues of Rs 601.5 crore, including Rs 297.5 crore in Tax Deducted at Source (TDS), Rs 156.4 crore towards employees’ provident fund, and Rs 145.1 crore for Goods and Services Tax (GST).
Legal Headwinds
This recent equity allotment from the airline comes at a time when the company is also grappling with legal challenges.
Prior to this, on Friday (September 20), the apex court of the country upheld a Delhi High Court order that directed the airline to ground three aircraft engines for failing to make payments to lessors. The court’s decision deals yet another blow to the airline, which has been struggling to maintain its fleet amid financial constraints.
SpiceJet Shares Performance
The shares of the company on Friday ended the week at Rs 66.16 apiece, down by 3.25 per cent.
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