SpiceJet to raise funds worth up to Rs 5,000 cr

Low-cost air carrier SpiceJet today said its shareholders have approved a proposal to raise funds worth up to Rs 5,000 crore.
The shareholders, at the company's 31st Annual General Meeting held here yesterday, also approved the appointment of promoter Ajay Singh and his wife Shivani Singh as directors, the company said in a regulatory filing.
Besides, the shareholders have also given their nod to the appointment of R Sasiprabhu as an Independent Director of the Company, it said.
Singh, earlier a co-founder of SpiceJet in 2005, took back its control after acquiring the entire 58.46 per cent stake of Kalanithi Maran and Kal Airways Pvt Ltd in February this year.

His holding in the company currently stands at 60.32 per cent.
Singh had said yesterday that the airline was looking to place order for new planes this fiscal.

"We will take the best decision in the interest of the company. We hope that we can do it in this financial year," he had said after the AGM, while adding that the response to the request for proposal (RFP) for new aircraft was being evaluated.
The shareholders also approved the airline's plans to raise loans up to Rs 5,000 crore through various instruments.
At present, SpiceJet has some 41 planes in its fleet, including 25 Boeing 737s, 14 Bombardier Q400s and two leased Airbus 320 family.

The airline is believed to be looking to order close to 150 new aircraft.
Remaining profitable for the third straight quarter, SpiceJet posted a net profit of Rs 23.77 crore in the three months ended September.
For the financial year 2015-16, SpiceJet saw its net
profit surging to Rs 407.19 crore against a net loss of Rs 687.05 crore in 2014-15 fiscal.
Aided by higher revenues and lower fuel costs, SpiceJet remained profitable for the fifth straight quarter posting a net profit of Rs 73.19 crore in the fourth quarter of last financial year.
"Today we are in a situation where for 12 months in a row the load factor is 92 and above and the company is significantly profitable and made close to Rs 500 crore in the last year. So I think we have done a fair job as management of the company and in the future we will see if there is any requirement to change that position," he said.

On the performance expectation this fiscal, Singh said the growth would be similar to that of last year's.
"It looks like this year growth is in the same order little in excess that happened last year," he said.
He said the priority is to enhance or improve network, to improve on-time performance, to consolidate the network to ensure that the airline fly in profitable routes.
"We are looking to place more aircraft into our fleet. We are looking to get more regional connectivity. More international connectivity," he added.
On the Delhi High Court order of depositing Rs 580 crore with it, he said "I do not want to comment. That is sub judice. Spicejet is taking appropriate legal steps in that regard. We will study that order first."

SpiceJet was today directed to deposit Rs 579 crore in 12 months before the Delhi High Court which asked the airline and Sun Group chief Kalanithi Maran alongwith his Kal Airways to appoint an arbitral tribunal to decide the share transfer dispute between them in a year.
The order came on Maran and his airline's plea for issuing them stock warrants in SpiceJet as per a sale purchase agreement (SPA) of 2015 which led to transfer of ownership of the budget carrier to its co-founder Ajay Singh.
Meanwhile, Spicejet today launched "Smart Mobile Check-in at Rajiv Gandhi International Airport here. Union Minister for Civil Aviation Ashok Gajapathi Raju unveiled the facility.