Chairman and Managing Director of SpiceJet, Ajay Singh, on Wednesday, said he will infuse Rs 500 crore into the airline by subscribing fresh equity shares and convertible instruments. The airline said the fresh infusion will strengthen the financial position of the company.
“The infusion of fresh capital will substantially strengthen the company’s financial position and is a powerful vote of confidence in its future and long-term viability. It marks a pivotal moment in SpiceJet’s journey towards sustained growth and long-term success,” the airline said in its press release.
SpiceJet said the airline's Board of Directors met on Wednesday, July 12, to consider options for raising fresh capital for the company where Ajay Singh offered to infuse the said amount.
“I am pleased to announce that I will infuse INR 500 Crore into the Company. SpiceJet has a bright future, and I am committed to helping it achieve its full potential. This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, grow its revenue and profits. We are committed to building a sustainable and profitable business, and this investment is a reflection of that commitment," said Ajay Singh.
“I am confident that SpiceJet, a powerful brand that has served passengers for over 18 years, will succeed in the long term and I am excited to be a part of this journey.”
On June 30, SpiceJet announced that it shall delay the declaration of its financial results for the fiscal year 2022-23 due to the ill health of a key member of its audit committee. Thereafter, on July 7, the Supreme Court ordered SpiceJet to pay the entire arbitral amount of Rs 380 crore in one shot. This is after SpiceJet was ordered to pay Kalanithi Maran, the erstwhile promoter of the airline, a sum of Rs 75 crores.
SpiceJet is already utilising $50 million ECLGS funds that it has already received and its own cash to revive its grounded aircraft. Meanwhile, in some good news for the airline, two of the grounded aircraft have been operationalised so far with many more expected to re-join the fleet soon.
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(Edited by : Sangam Singh)
First Published: Jul 12, 2023 6:55 PM IST
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