Financially troubled SpiceJet is looking to raise fresh capital as the airline continues to grapple with mounting dues, delayed payments to suppliers and other financial liabilities. The airline has called a board meeting on November 18 to consider raising funds through equity shares, debt securities and other financial instruments.
The move comes amid concerns over the airline’s ability to meet its payment obligations. Between April and September, SpiceJet missed the statutory 45-day payment deadline on more than 85 per cent of invoices from small suppliers, with Rs 63.03 crore remaining unpaid beyond the stipulated period. SpiceJet’s active fleet has also shrunk to just 12 aircraft, leading to severe operational disruptions and daily flight cancellations.
In a regulatory filing to the BSE on Friday, SpiceJet said its Board of Directors would meet on Wednesday to consider and approve a proposal for raising fresh capital through the issuance of equity shares, preference shares, debt securities or other permissible instruments.
The airline said the funds could be raised through a preferential issue, qualified institutions placement (QIP) or any other mode considered appropriate by the board.
However, SpiceJet has not disclosed how much money it plans to raise or how the proposed funds would be utilised. The proposal will be subject to necessary approvals from shareholders and regulatory authorities, wherever required.
Under the payment rules applicable to micro and small enterprises, dues must be cleared within the prescribed period, which cannot exceed 45 days where a written agreement exists. SpiceJet’s disclosure also comes amid its efforts to secure additional funds to meet financial requirements and support its operations.
The airline said the trading window for dealing in its securities would remain closed until further notice in accordance with the Securities and Exchange Board of India’s insider trading regulations.
