SpiceJet raises second tranche of Rs 316 crore under preferential issue

SpiceJet announced on Thursday that it had raised a second tranche of Rs 316 crore under the preferential issue of equity and warrants, which was approved by shareholders in early January.

On January 26, the first tranche of Rs 744 crore was infused into the airline. On January 11, the beleaguered airline's shareholders gave their approval to raise a total of Rs 2,241.5 crore through the issuance of equity and warrants – Rs 1,591.5 crore by issuing equity to 58 entities and Rs 650 crore by issuing warrants on a preferential basis to five other entities.

This means that a remaining Rs 1,181.5 crore is yet to be infused into the airline by the investors. These 63 entities include financial institutions, foreign institutional investors, high-net-worth individuals, and private investors such as Preeti Mahapatra, Harihara Mahapatra, Elara India Opportunities Fund, and Aries Opportunities Fund.

The airline has been facing a cash crunch for the past several quarters. It is also dealing with multiple court cases regarding money owed to former owner Kalanithi Maran, financial services firm Credit Suisse, aircraft lessors, and engine lessors.

Meanwhile, SpiceJet promoter Ajay Singh and EaseMyTrip co-founder Nishant Pitti had on February 16 announced that they have jointly submitted a bid for insolvent airline Go First, which ceased to fly in May last year. Pitti is participating through Busy Bee Airways Private Ltd (BBAPL). The Supreme Court was not happy with this announcement.

“You have the money to buy Go First but not pay Credit Suisse,” the Supreme Court had on February 19 asked Singh while directing him to shell out the outstanding dues to the Swiss firm by March 15.

“Why don’t we take judicial notice of newspaper reports that you’re planning to take GoAir (now Go First)? You have that much cushion and you won’t repay?” the court said while directing Singh to be present on the next date of hearing, which is March 22.