SpiceJet Settles Rs 80 Crore Salary Dues Following Rs 3,000 Crore QIP Boost

According to the airline, the newly raised capital will be allocated to operationalising grounded aircraft, acquiring new planes, investing in technology, and expanding into new markets

Troubled airline SpiceJet has reportedly cleared salary dues amounting to Rs 80 crore, covering the period from June to August. This development follows the airline’s recent financial manoeuvre, in which it raised Rs 3,000 crore through a Qualified Institutional Placement (QIP), according to a report from CNBC-TV18 citing familiar sources.

The QIP that opened on September 16 and closed on September 18 received an enthusiastic response from qualified investors, resulting in significant oversubscription. As noted by the company in a statement earlier this month, this strong demand reflects robust confidence in SpiceJet's growth prospects.

The QIP attracted a diverse array of institutional investors and mutual funds, including notable names such as Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore Ltd ODI, Tata Mutual Fund, and Discovery Global Opportunity Ltd, among others.

According to the airline, the newly raised capital will be allocated to operationalising grounded aircraft, acquiring new planes, investing in technology, and expanding into new markets.

Earlier this month, SpiceJet said it has not paid statutory dues of nearly Rs 427 crore from April 2020 to August 2024 due to its "constrained financial position." These unpaid dues include Rs 219.8 crore in tax deducted at source (TDS), Rs 71.33 crore in goods and services tax (GST), and Rs 135.47 crore related to provident fund (PF) contributions.

The financially struggling airline also reported that 36 out of its 58 aircraft are currently grounded, primarily due to "alleged defaults" in payments to lessors, challenges with aircraft maintenance, and difficulties in obtaining necessary components and spare parts. 

In addition to the statutory dues, SpiceJet indicated it owes Rs 118.9 crore to its employees as of September 15, 2024, which it plans to settle using funds from the QIP. The airline’s airport dues amount to Rs 290 crore as of the same date, with Rs 150.3 crore expected to be cleared from the funds raised. SpiceJet also intends to allocate Rs 370 crore to expand its fleet.