SpiceJet Limited, the financially distressed Indian low-cost carrier, has taken steps to address its financial challenges by allotting 4.81 crore equity shares to nine aircraft lessors on a preferential basis. This allocation, valued at ₹231 crore, is aimed at clearing the airline’s outstanding dues, according to a statement filed with the BSE.
During a recent shareholders’ meeting, several key resolutions were passed, including raising ₹2,500 crore in funds and conducting a preferential share issuance to lessors at an issue price of ₹48 per share. The equity shares were issued to nine lessors, which include SASOF III (A13) Aviation Ireland DAC, SASOF III (A6) Aviation Ireland DAC, SASOF III (C) Aviation Ireland DAC, SASOF III (E) Aviation Ireland DAC, SASOF III (A19) Aviation Ireland DAC, SASOF II (J) Aviation Ireland DAC, Citrine Aircraft Leasing Limited, Fly Aircraft Holdings Seven Limited, and Fly Aircraft Holdings One Limited.
In addition to the equity share allotment to lessors, the company disclosed that it also issued 3.41 crore equity shares and 13.15 crore warrants on a preferential basis to Spice Health Care Private Limited, an entity within the promoter group, at an issue price of ₹29.84 each.
SpiceJet has been grappling with financial difficulties and has been working diligently to raise funds and restore operations for approximately 25% of its fleet, which has remained grounded. This situation has arisen amid intense competition within the airline sector. Legal disputes, financial constraints, and a grounded fleet have contributed to SpiceJet’s reduced market share, which stood at 4.2% as of July—lower than that of new entrant Akasa Air.
The airline has been embroiled in legal battles with various lessors over unpaid dues, further complicating its financial woes. Additionally, the Delhi High Court recently ordered SpiceJet to pay ₹100 crore to former owner Kalanithi Maran by September 10th, as part of the ₹397 crore it owes to Maran.
SpiceJet’s efforts to secure funds and address its financial challenges will play a crucial role in determining its future in the fiercely competitive Indian aviation market.