Thursday, Nov 20 — Shares of SpiceJet were trading nearly 2% higher in early deals after the airline announced the completion of its long-pending equity allotment to global aircraft leasing and financing firm Carlyle Aviation Partners, a major step toward reducing debt and strengthening liquidity.
The stock opened with positive sentiment after the company confirmed that it has successfully allotted 10.41 crore equity shares at Rs 42.32 per share to Carlyle Aviation on a preferential basis. This equity issuance has immediately helped SpiceJet shave off Rs 442.25 crore (USD 50 million) in liabilities from its balance sheet.
What the restructuring means for SpiceJet
The allotment marks the execution of a previously announced settlement, under which Carlyle Aviation agreed to restructure lease dues worth USD 121.18 million. The arrangement is expected to provide the airline with USD 89.5 million in liquidity, aiding its ongoing restructuring and fleet revival efforts.
Under the agreement, lessors also benefit from a mechanism where, if the shares are sold for more than USD 50 million, part of the excess proceeds will go toward offsetting future lease obligations. This structure allows SpiceJet to reduce long-term liabilities while ensuring stability in cash flow planning.
Additionally, SpiceJet will now have access to USD 79.6 million in cash maintenance reserves and USD 9.9 million in maintenance credits, which can be used for aircraft and engine upkeep—crucial at a time when the airline is working to bring grounded planes back into service.
Management outlook
Chairman and MD Ajay Singh called the completion of the equity issuance an “important milestone,” adding that it strengthens SpiceJet’s financial position and supports ongoing operational revival.
The update follows the airline’s Q2 results last week, where it reported a net loss of Rs 635.42 crore, driven by forex losses, expenses related to reintroducing grounded aircraft and restrictions linked to airspace curbs.
With the Carlyle deal now completed, the market responded positively, helping the stock inch closer to the 2% mark, trading around Rs 37.35 in early session.
