SpiceJet faces liquidity crunch, plans to raise Rs 750 crore via QIP

The prolonged grounding of the Boeing 737 MAX aircraft has put pressure on the airline's cost control

SpiceJet, India’s second-largest airline, is planning to raise around Rs 750 crore by selling new shares, three people aware of the development said.

The airline is considering a qualified institutional placement (QIP) as a prolonged grounding of the Boeing 737 MAX aircraft and a severe fare war have put the airline’s balance sheet under pressure.

QIP is a capital-raising tool by which listed companies can sell shares, fully and partly convertible debentures, or any securities other than warrants to a qualified institutional buyer.

An airline spokesperson denied there was any such move, but multiple sources said the airline management had