On Tuesday, India’s SpiceJet announced plans to raise 30 billion rupees (approximately $360 million) by selling securities, including shares. This move is the struggling budget airline’s latest effort to secure funds and restore full operations.
The company stated in an exchange filing that it will issue shares to institutional investors, but did not disclose the selling price.
SpiceJet has been urgently seeking funds following a series of quarterly losses. Some lessors have taken the airline to court over unpaid dues and have requested the country’s aviation regulator to deregister their planes.
As of the end of March, SpiceJet had cash and cash equivalents of 1.87 billion rupees, while its cash from operational activities was a negative 6.13 billion rupees.
Unlike other major Indian airlines like IndiGo and those under the Air India group, which have introduced newer jets over the past year to meet booming demand in one of the world’s fastest-growing aviation markets, SpiceJet has struggled to return grounded jets to service, losing market share due to its legal and financial issues.
In the June quarter, SpiceJet’s market share was 4.2%, slightly below the 4.7% of the newest entrant, Akasa Air, marking only the second time this has happened since Akasa Air began operations in mid-2022, according to data from India’s aviation regulator.
Following the announcement, SpiceJet shares rose as much as 7% to 58.65 rupees. However, its shares are down about 4% in 2024, in contrast to a 44% increase in market leader IndiGo’s shares.
