NEW DELHI: SpiceJet said on Monday that it has successfully raised Rs 3000 crore through its recently concluded Qualified Institutional Placement (QIP).
In addition to the Rs 3,000 crore, SpiceJet claims it will also receive an additional Rs 736 crore from the previous funding round, boosting its financial stability and growth plans.
“The QIP, which opened on September 16 and closed on September 18, received an overwhelming response from qualified investors, demonstrating strong confidence in the company’s growth prospects,” the airline said in a statement.
It informed that the QIP attracted a diverse pool of top-tier institutional investors and mutual funds, “reaffirming the market’s belief in SpiceJet’s ability to navigate industry challenges and capitalise on the growing demand in the aviation sector.”
The fundraising development by SpiceJet comes on the same day when The National Company Law Tribunal (NCLT) issued notice to the debt-ridden carrier over the plea filed by one of its operational creditors. A two-member NCLT bench, comprising Mahendra Khandelwal and Sanjeev Tanjan, has directed Spicejet to file a reply and list the matter for the next hearing on November 14.
SpiceJet claims that global investors including Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore Limited ODI, Tata Mutual Fund, Discovery Global Opportunity Ltd, Societe Generale ODI, Authum Investment and Infrastructure Limited, Bandhan Infrastructure Fund, White Oak, Carnelian Bharat AmrikaalFund, 360 ONE Equal Opportunity Fund and The Jupiter Global Fund participated in the QIP.
Ajay Singh, Chairman and Managing Director of SpiceJet, said, “This fundraise marks a pivotal moment for SpiceJet as we look to scale new heights in the aviation industry.”
“We extend our deepest gratitude to the Ministry of Civil Aviation, the regulators, and all those who supported us throughout this challenging journey. Their unwavering belief in our mission and the role we play in keeping competition alive in the Indian aviation market has been instrumental in our success,” added Singh.
The airline had earlier said that it would use the fund to clear statutory dues and other liabilities such as payments to lessors and creditors. SpiceJet has not paid statutory dues amounting to Rs 427 crore between March 2020 and August 2024.
These statutory dues include Rs 219.8 crore in tax deducted at source (TDS), Rs 71.33 crore in goods and services tax (GST), and Rs 135.47 crore towards provident fund (PF) contribution.
New Insolvency Plea
The latest petition is by Techjockey Infotech Pvt Ltd, an operational creditor. The petition filed under section 9 of the Insolvency & Bankruptcy Code through Karanjawala & Co. Techjockey Infotech claimed that SpiceJet defaulted on nearly Rs 1.2 crore for software services. They requested to initiate a corporate insolvency resolution process (CIRP) against the air carrier.
It contended that its debt has been acknowledged by SpiceJet, though it has not been yet complied.
SpiceJet is already facing several insolvency petitions from creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington and Celestial Aviation at NCLT and the appellate tribunal NCLAT.