SpiceJet Promoter Ajay Singh To Infuse Rs 500 Crore In Airline To Boost Finances

The airline said that the fresh equity investment will also enable SpiceJet to avail additional credit facilities of Rs 206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS). 

SpiceJet promoter Ajay Singh has decided to infuse Rs 500 crore into the airline, the company announced on Wednesday, reported PTI. This capital infusion aims to strengthen the company's financial position amid multiple headwinds. In a statement released on Wednesday, the airline said that the fresh equity investment will also enable SpiceJet to avail additional credit facilities of Rs 206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS). 

As per the report, the board of SpiceJet on Wednesday also considered options for raising fresh capital.

'The board deliberated on the matter and agreed to issue equity shares and/or convertible securities/equity share warrants on preferential basis to the promoter and/or the promoter group of the company, on preferential basis, in one or more tranches at an issue price to be determined in accordance with the SEBI (rules) for Rs 500 crore..." the airline said in a statement.

"Ajay Singh, promoter of the company, in order to strengthen the financial position of the company, offered to infuse Rs 500 crore," the statement said. Singh is also the Chairman and Managing Director of SpiceJet. 

"SpiceJet has a bright future and I am committed to helping it achieve its full potential. This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, grow its revenue and profits," Singh said, as per the report. 

SpiceJet is already utilizing $50 million in funds received from the Emergency Credit Line Guarantee Scheme (ECLGS) as well as its own cash reserves to restore its grounded aircraft. As of now, the airline has successfully revived two aircraft, a Boeing 737 and a Q400, and plans to bring more planes back into service in the near future. This initiative is aimed at strengthening the airline's fleet and enhancing its operational capacity.

Meanwhile, on Wednesday, ANI reported that SpiceJet has been placed under enhanced surveillance by the Directorate General of Civil Aviation (DGCA) as a precautionary measure.

As per the report, the step has been taken to ensure there are no operational impacts due to any potential financial issues. The DGCA is closely monitoring the airline to prevent a recurrence of incidents experienced during the previous monsoon season.