SpiceJet shares skyrocket as the airline aims to raise funds worth ₹2,000 crores | Business Upturn

SpiceJet shares skyrocket as the airline aims to raise funds worth ₹2,000 crores

SpiceJet’s board of directors recently passed a resolution to raise funds for the airline’s sustainability and future expansion, and the airline is exploring multiple funding options.

Shares of low-cost airline SpiceJet Ltd on Tuesday increased 2.63% to trade at 46.80 per share on the NSE during late trading hours following the company’s announcement that it is looking into fundraising options.

Ajay Singh, the airline’s chairman and managing director, said the company is looking to raise ₹2,000 crores. As per him, the shareholders of SpiceJet, a publicly traded company, have agreed to raise between ₹1,500 to ₹2,000 crores in the capital, some of which have already been raised.

Singh also stated that it is making every effort to overcome the stress it has encountered and that the approach is to increase resources.

The SpiceJet Chairman stated, “We’re doing it by using the government-supported scheme ECLGS, getting a new plane from Boeing and as a result through the SLB process, exploring options for fundraising we’re exploring all options.

The domestic airline is pursuing a number of strategies to raise money, including government lending programmes, and stake or equity sales.

Singh stated that the provider would take all necessary measures to ensure that it continues to be a strong and active player without providing any additional information.

SpiceJet has yet to release its Q4 FY22 results, citing a ransomware attack on its IT systems that prevented the audit process from being completed on time.

SpiceJet shares have risen more than 21% in the last month, but are down around 30% over the last year.