SpiceJet gets approval to raise Rs 5,000 crore

SpiceJet gets approval to raise Rs 5,000 croreRepresentational ImageReuters

Budget airline SpiceJet on Tuesday said that it has got shareholders’ nod to raise funds worth nearly Rs 5,000 crore.

At the company’s 31st annual general meeting, on 28 December, the shareholders also gave their consent to the appointment of promoter Ajay Singh and his wife Shivani Singh as directors, according to a regulatory filing by the company.

Also, the shareholders have approved the appointment of R Sasiprabhu as an independent director, PTI reported.

India’s second-biggest budget airline by market share was on the verge of collapse late last year, before an ownership change in January this year that saw Ajay Singh acquiring the entire 58.4% stake held by the Marans.

Following the infusion of funds by Singh to restructure the loss-making airline, SpiceJet returned to making profits in the January-March quarter this year, earning Rs 22.5 crore. The airline also posted profits in the following two quarters, supported by a fall in fuel prices and increased passenger traffic on its flights. The turnaround has led to over 260% increase in its shares so far this year.

SpiceJet recorded a passenger load factor (PLF) of 92% in October and its market share increased to 12.8% in the month. It saw passenger traffic of 8.99 lakh during the month, according to a data from Director General of Civil Aviation (DGCA).

In November, the airline had said that it was in talks with aircraft manufacturers Boeing and Airbus to expand its fleet by more than 150 planes. Currently, the carrier has a fleet of 41 planes and Singh plans to “more than quadruple” it.

Led by a turnaround, SpiceJet saw its share prices rise by nearly 300% so far this on the stock exchanges.

Copyright 2000 © Finance solutions