SpiceJet Announces Board Meeting to Raise Capital Amid Financial Struggles

SpiceJet is set to hold a board meeting on July 23 to discuss raising fresh capital through Qualified Institutional Placement (QIP). Despite recent profit gains, the airline has faced significant financial challenges, including un-deposited Employee Provident Funds for its staff and grounding of multiple aircraft.

No-frills carrier SpiceJet has scheduled a board meeting on July 23 to consider raising fresh capital through a Qualified Institutional Placement (QIP).

The airline, in a regulatory filing, stated that the Board of Directors will discuss and approve raising fresh capital by issuing eligible securities to qualified institutional buyers.

Earlier this year, SpiceJet received in-principle approval from the BSE for a fund infusion of Rs 2,242 crore, of which Rs 1,060 crore has already been raised under preferential issue in two tranches.

Despite a multi-fold jump in standalone profit after tax (PAT) to Rs 119 crore for the January-March quarter of FY24, SpiceJet posted a loss of Rs 409.43 crore for the full fiscal year. The losses were significant, following a Rs 1,503 crore loss in FY23.

The airline has been struggling over several quarters, highlighted by un-deposited Employee Provident Fund Contributions for its 11,581 staff since January, and 33 out of its 60 planes being grounded.