SpiceJet, led by promoter Ajay Singh, has secured an additional Rs 316 crore from investors in its second round of capital infusion, bringing the total raised funds to Rs 1,060 crore.
A spokesperson for SpiceJet confirmed, “SpiceJet has successfully raised an extra Rs 316 crore, elevating the total investment to Rs 1,060 crore through its preferential issue. This substantial investment underscores the strong confidence investors have in SpiceJet’s prospects, paving the way for promising opportunities for the company.”
Earlier, on January 27, SpiceJet concluded the initial phase of capital infusion, amassing Rs 744 crore through preferential allotment of securities.
Reportedly, the airline is planning to raise Rs 2,250 crore through the sale of shares and warrants. These funds are anticipated to play a crucial role in supporting various operational expansion initiatives, including fleet augmentation, route network expansion, and technological upgrades, amidst the challenges faced by SpiceJet.
Ajay Singh highlighted, “This capital infusion will not only fortify our financial position but also enable us to operate more efficiently, expand our fleet and network, thereby unlocking new opportunities for growth.”
In a bid to curtail costs and enhance profitability, SpiceJet announced plans to lay off approximately 1,000 employees, aimed at saving around Rs 100 crore annually. This strategic manpower rationalization was confirmed by a spokesperson on February 13.
SpiceJet, established in 2005, currently operates with around 9,000 employees and a fleet of 30 aircraft, including 10 on wet lease. Before the pandemic in 2019, the airline boasted a fleet of 118 planes and a workforce exceeding 15,000.
Despite challenges, SpiceJet recorded a notable reduction in its net loss to Rs 428 crore in Q2 FY2024, marking a significant improvement from Rs 835 crore in Q2 FY2023.
Operating approximately 250 daily flights to 48 domestic and international destinations, SpiceJet’s fleet comprises various aircraft models, including the Boeing 737 Max, Boeing 700, and Q400s.
