SpiceJet gets good response for Rs 3k cr worth share sale, oversubscribed

SpiceJet, which has statutory dues of more than Rs 601 crore, has received a good response for its Rs 3,000 crore-worth sale of shares to qualified institutional buyers.

Operating with a reduced fleet as well as facing financial and legal headwinds, the carrier is looking to raise funds.

Sources in the know on Wednesday said the qualified institutional placement has been oversubscribed, with participation from various investors, including family offices and institutional funds.

Some of the investors include family offices of Madhu Kela, Akash Bhanshali, Sanjay Dangi and Rohit Kothari, the sources said.

There was no official comment from the airline.

"Due to our financial constraints, our company has not been able to fulfil the statutory liabilities accruing on us on a month to month basis," the airline said in the preliminary placement document related to raising Rs 3,000 crore.

As per the document, the airline has not made provident fund payments to the tune of over Rs 135 crore from April 2020 to August 2023, as per the document.

The carrier's statutory dues totalled Rs 601.5 crore as on September 15 and net proceeds from the placement will also be utilised towards clearing the dues.

Of the total amount, Rs 297.5 crore is towards deposit of Tax Deducted at Source (TDS), Rs 156.4 crore related to deposit of employees' provident fund, and Rs 145.1 crore pertains to Goods and Services Tax (GST).

The proceeds will also be used for settling liabilities of creditors, including aircraft and engine lessors, engineering vendors and financiers.