SpiceJet’s Ajay Singh is likely to offload 15% stake (Image source: iStockphoto)
SpiceJet Promoter and president Ajay Singh could shed more than 10 percent of the struggling airline’s shares as part of the latest funding round expected to close by the end of September, the sources said.
The budget airline, which is facing multiple problems including financial challenges, legal battles and flight suspensions, is seeking to raise money to help it meet several obligations.
One of the sources said Singh could sell up to 15 per cent stake in the airline if certain conditions are met.
Singh, who is chairman and chief executive, would part with around 10 percent of the airline’s shares and the amount could rise, the second source said.
For the proposed QIP (Qualified Institutional Placement), a commitment of up to Rs 2,000 crore is already in place and the airline is in talks with potential investors. Meetings have been held with investors in India and abroad, sources in the know said.
There was no official comment from Jet Spice.
The financing round is expected to be completed by the end of September.
As of the end of June 2024, the promoter group held just over 47 per cent of the shares in the airline, as per data available on the BSE.
SpiceJet, which had a fleet of 74 aircraft in 2019, currently operates around 20 aircraft.
On Friday, the airline said it plans to mop up Rs 3,200 crore through QIP, warrants and equity infusion by the promoter, the airline said in a filing on Friday.
The funds will be used to resume operations of the grounded fleet, settle liabilities, add new fleet and for other general purposes.
“Spicejet plans to raise Rs 2,500 crore through QIP and Rs 736 crore through pre-issue warrants and promoter infusion, the airline said in an investor presentation,” it had said in the presentation to investors.
In January, SpiceJet was able to raise only Rs 1,060 crore through preferential issues against its Rs 2,250 crore funding plan that was announced in December 2023.
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