Aviation

SpiceJet to raise Rs 750 crore via QIP, says report

Updated : November 25, 2019 11:52 AM IST

SpiceJet's total net loss widened to Rs 462.6 crore on account of grounding of Boeing 737 MAX along with the change in accounting standard.

While SpiecJet's spokesperson denied the report, sources told the paper the management is already in talks with various domestic funds such as Birla Sun Life Insurance and Axis Asset Management.

SpiceJet is looking to raise Rs 750 crore in order to tackle the current liquidity crunch, reported Business Standard. Sources told the newspaper the airline is planning to raise the amount by selling new shares.

SpiceJet, the report said, is expected to raise the money via qualified institutional placement (QIP). The QIP is a fundraising method in which, listed companies sell shares, convertible debentures, or any securities other than warrants to a qualified institutional buyer.

SpiceJet, in a statement to the stock exchanged, said, "We wish to clarify that the Company does not have any plan to come with any qualified institutional placement (QIP) at this time."

Sources told the paper the management is already in talks with various domestic funds such as Birla Sun Life Insurance and Axis Asset Management. Further, the report added approval from the board and selecting a banker is still pending.

The development comes after the share price of SpiceJet plunged 7 percent after the airlines reported a widened net loss in the July-September quarter this fiscal. India's second-largest domestic airlines' total net loss widened to Rs 462.6 crore on account of grounding of Boeing 737 MAX along with the change in accounting standard.

SpiceJet to raise Rs 750 crore via QIP, says report

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