SpiceJet, which has statutory dues of over Rs 601 crore, has received a good response for its share sale worth Rs 3,000 crore to qualified institutional buyers.
The airline, which operates with a reduced fleet and faces financial and legal hurdles, is seeking to raise funds.
Sources familiar with the matter said on Wednesday that the qualified institutional placement has been oversubscribed, with participation from several investors, including family offices and institutional funds.
Some of the investors include the family offices of Madhu Kela, Akash Bhanshali, Sanjay Dangi and Rohit Kothari, sources said.
There was no official comment from the airline.
“Due to our financial constraints, our company has not been able to meet the statutory obligations accruing to us month on month,” the airline said in the preliminary placement document related to raising Rs 3,000 crore.
According to the document, the airline has not made payments to the provident fund worth over Rs 135 crore from April 2020 to August 2023, the document said.
The carrier’s statutory dues totalled Rs 601.5 crore as of September 15 and the net proceeds from the placement will also be utilised to settle the dues.
Of the total amount, Rs 297.5 crore is for deposit of Tax Deducted at Source (TDS), Rs 156.4 crore relates to deposit of employees’ provident fund and Rs 145.1 crore belongs to Goods and Services Tax (GST).
The proceeds will also be used to settle obligations of creditors, including aircraft and engine lessors, engineering suppliers and financiers.
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