GURUGRAM, December 12, 2023: The Board of Directors of SpiceJet Ltd. met today and approved the raising of fresh capital of over INR 2,250 Crore (approximately USD 270 million) through the issuance of equity shares to Financial Institutions, FII’s, HNI’s and private investors aimed at fortifying the airline's financial strength and accelerating its growth trajectory.

The Board, in a unanimous decision, considered and approved issuance of equity shares/equity warrants under private placement basis, subject to shareholder and regulatory approvals as may be required.

The proposed preferential issues comprise of investors like Elara India Opportunities Fund, Aries Opportunities Fund, Mahapatra Universal Limited, Nexus Global Fund, Prabhudas Lilladher, Resonance Opportunities Fund and many more for issuance of equity shares and equity warrants aggregating to over INR 2,250 Crore.

The proposed fund infusion will go a long way in enhancing product presence and market reach of SpiceJet and will also provide deep financial foundation. The capital raised will be instrumental in funding operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements.

“This is a significant fund raise and it is designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth in the dynamic aviation sector,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

He expressed optimism about the positive impact these developments would have on the airline’s future.

“We are confident that this capital raise will help us achieve our goal of building a world class airline in India. I personally thank all our stakeholders, all those who work for SpiceJet and all those who work with SpiceJet and who have patiently waited for this day. They have allowed us the time and opportunity to overcome a difficult phase in our history, and we are grateful to them,” Singh said.

SpiceJet Reduces Net Loss to INR 428 Crore in Q2 FY2024 as Against Net Loss of INR 835 Crore in Q2 FY2023

Maintains Strong Performance in Passenger Business; Operating Margin Improves; Registers One of the Industry’s Best Domestic Load Factors of 86.6%

For the Quarter ending September 2023

• Launched 13 new routes during the quarter
• Passenger RASK increased by 11% due to increase in yield by 8% & load factor by 3%
• Sustained market leadership in loads and regained leadership in Passenger RASK and overall RASK for the quarter

Key highlights for the Quarter ending September 2023

• Planned and phased infusion of fresh capital by the promoter of INR 500 Crore of which INR 200 Crore already received by the Company
• Debt to equity conversion with Carlyle Aviation Partners by allotment of over 4.81 Crore equity shares at a price of INR 48 per share leading to reduction of debt of over INR 230 Crore
• Settlement of dues with aircraft lessor Castle Lake
• Successful repayment and closure of INR 100 Crore loan from City Union Bank

“The July-September quarter has historically been a challenging period for the aviation industry. This year, the challenges were further compounded by elevated fuel prices, impacting operational costs. SpiceJet, however, has been proactive in implementing cost-saving measures and remains focused on adapting to the dynamic market conditions,” CMD Ajay Singh said.

“In the face of these challenges, SpiceJet emphasizes its commitment to operational efficiency, customer service, and strategic decision-making to navigate the complexities of the aviation landscape. The airline continues to explore avenues for growth and profitability in the evolving market and the fresh infusion of over INR 2,250 Crore in the Company will bring renewed energy to adapt to the changing circumstances.”

About SpiceJet:

SpiceJet is India's favourite airline that has made flying affordable for more Indians than ever before. SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s & Q-400s and is one of the country's largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline's fleet offers SpiceMax, the most spacious economy class seating in India.