SpiceJet Set To Raise Rs 3,000 Crore Via QIP Closing Today

SpiceJet Ltd's. Rs 3,000 crore qualified institutional placement issue, which opened post-market hours on Monday, closes on Tuesday. The fund raising was initiated to address the financial and operational challenges currently plaguing the low-cost carrier.

The QIP offers shares at an indicative price of Rs 61.60 per equity share, a 4.92% discount to the SEBI floor price of Rs 64.79.

The QIP, managed by DAM Capital Advisors Ltd., includes a base size of Rs 1,500 crore, with a green shoe option of an additional Rs 1,500 crore, making the total issue size potentially Rs 3,000 crore (approximately $358 million). 

According to an earlier exchange filing, SpiceJet is looking to use the funds to settle outstanding liabilities. The carrier owes Rs 3,700 crore to lessors, engineering vendors and suppliers, as well as Rs 650 crore in unpaid statutory dues

SpiceJet, which once operated 74 aircraft, now has only 28 in service, with 36 planes grounded due to unpaid dues and lack of funding. The dilution from the QIP is expected to be around 38% of the post-issue paid-up equity share capital, based on the indicative issue price. The demat credit of the new shares is scheduled for Sept. 24.

The airline's financial troubles and legal disputes have prompted this capital-raising effort, which was approved by shareholders on Sept. 13. 

In an investor presentation on Sept. 6, SpiceJet attributed its troubles to a combination of factors, including escalating fuel costs, the grounding of aircraft due to payment delays, and ongoing legal battles with lessors. 

Shares of SpiceJet closed 5.23% lower at Rs 73.72 per share, compared to a 0.11% advance in the Sensex.