SpiceJet has successfully secured the initial installment of Rs 744 crore as part of its fund raising plan.

SpiceJet, grappling with various challenges, announced on Friday that it has successfully received the first tranche of funds amounting to Rs 744 crore as part of its ongoing fundraising initiative involving the issuance of securities on a preferential basis. This move is in line with the airline's earlier declaration on December 12, outlining plans to raise fresh capital amounting to Rs 2,250 crore through the issuance of securities.

In a press release, SpiceJet disclosed that on January 25, the company's board of directors granted approval for the allotment of 5.55 crore equity shares on a preferential basis to 54 subscribers. The initial tranche of funds raised through this allotment includes shares and warrants totaling Rs 744 crore. Furthermore, the board sanctioned the allotment of 9.33 crore warrants to Elara India Opportunities Fund Ltd and Silver Stallion Ltd.

Despite progress in the fundraising process, the airline has sought an extension from the competent authority to complete the ongoing preferential issue. This request for additional time is attributed to the limited banking days caused by extended weekends during the intervening period, although specific dates were not disclosed.

Ajay Singh, the Chairman and Managing Director of SpiceJet, expressed optimism about the impact of the fund infusion on the airline's operations. He highlighted that the capital injection will pave the way for new opportunities, enabling a more cash-efficient operation, as well as facilitating the expansion of the airline's fleet and network.

The successful receipt of the initial tranche underscores the airline's commitment to navigating the current challenges facing the aviation industry and signifies a positive step forward in enhancing its financial resilience and operational capabilities.