Indian airline SpiceJet has successfully raised ₹3,000 crore through a recently concluded Qualified Institutional Placement (QIP), which was significantly oversubscribed by investors. The funds will be crucial in bringing grounded aircraft back into operation, acquiring new planes, investing in advanced technology, and expanding into new markets.
The airline previously announced its plan to unground 28 of its 36 grounded aircraft, including two freighters. According to ch-aviation, the company aims to restore three B737-700s, two B737-700 (BDSF)s, four B737-800s, three B737-900s, three B737-8s, and thirteen DHC-8-Q400s to service.
The QIP, which was open from September 16 to September 18, drew the interest of a diverse range of top-tier institutional investors and mutual funds. Among the global participants were 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 Amrikaal Fund, 360 ONE Equal Opportunity Fund, and The Jupiter Global Fund.
In addition to the ₹3,000 crore raised through this QIP, SpiceJet will also secure an additional ₹736 crore from a prior funding round.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed his enthusiasm for the successful fundraising, saying, “We are elated by the overwhelming response from our investors. Their confidence in SpiceJet’s future is a strong endorsement of our ability to rapidly scale up and strengthen our position in India’s growing aviation market. This marks a pivotal moment for us as we aim to reach new heights.”
Singh further added, “We are committed to rebuilding a world-class airline that India can take pride in. With this fresh capital, we are ready to ‘paint the skies red’ once again. We deeply appreciate the support from the Ministry of Civil Aviation, the regulators, and all those who have stood by us during this challenging period. Their trust has been instrumental in keeping competition alive in India’s aviation sector.”
He also expressed his gratitude to SpiceJet’s employees, stating, “This achievement is a testament to the unwavering grit and dedication of our team. Their tireless efforts and resilience have been the backbone of our success in securing ₹3,000 crore in funding.”
With the fresh infusion of capital, SpiceJet is poised for a strong comeback, reaffirming its commitment to becoming a key player in India’s aviation landscape.
