SpiceJet to raise Rs 2,500 crore to fund working capital requirements

Low-cost airline SpiceJet has announced that it will raise Rs 2,500 crore to fund its working capital requirements.

“The intensity with which the second wave of Covid-19 struck and the unimaginable devastation it has caused, both for the already battered travel industry and generally, will take time to heal. To ensure our long term growth and sustainable operation we have decided to raise funds of up to Rs 2,500 crore. These funds will be used to significantly strengthen our balance sheet,” Ajay Singh, Chairman and Managing Director of the company said.

SpiceJet is the third Indian airline after Go First (earlier GoAir) and IndiGo, which has also announced that it will raise capital. While Go First is in the process of going public, IndiGo has announced that it will raise Rs 3,000 crore.

The airline reported a net loss of Rs 235.3 crore in the fourth quarter of FY21, against a loss of Rs 807.1 crore during the same quarter last year, as it continues to show compensation for Boeing 737 MAX grounding as earnings.