Spicejet to raise $75 million for fleet, route expansion

Private air carrier Spicejet today said it will raise $75 million (about Rs 355 crore) through the sale of shares or bonds to fund its fleet and route expansion programme.

"The board of Spicejet has passed an enabling resolution to raise funds not exceeding $75 million through any combination of instruments either locally or abroad," Spicejet Ltd said in a filing to the Bombay Stock Exchange (BSE).

Earlier this week, the company, in a regulatory filing to the BSE, informed that it plans to induct five new aircraft during the year to capitalise on demand.

SpiceJet has received government approval to fly to several SAARC countries and is in the process of planning and launching services to these countries, it said.
    
The company will raise the funds by issuing shares or bonds and the proposal is subject to shareholders approval, the filing added.
    
The low fare private carrier had announced a return to profit when it posted a net profit of Rs 27.50 crore for the January-March quarter, after suffering a net loss of Rs 7.8 crore in the corresponding period in FY2009.
    
For the 2009-10 fiscal, the airline reported a net profit of Rs 61.4 crore. It had registered a loss of Rs 352.5 crore in the previous financial year.
    
Shares of Spicejet were trading at Rs 53 on BSE, up 3.72 per cent from the previous close.