Fund raising plan: SpiceJet receives first tranche of Rs 744 crore

New Delhi: SpiceJet, which has been facing multiple headwinds, on Friday said it has received Rs 744 crore as the first tranche of funds being raised through allotment of securities on a preferential basis.

On December 12, the airline had said it would raise fresh capital of Rs 2,250 crore through issuance of securities.

According to a release, on January 25, the company's board of directors approved the allotment of 5.55 crore equity shares on a preferential basis to 54 subscribers.

The airline has allotted shares and warrants totalling Rs 744 crore on a preferential basis in the first tranche.

The board has also approved the allotment of 9.33 crore warrants to Elara India Opportunities Fund Ltd and Silver Stallion Ltd.

Meanwhile, the airline has requested for additional time from the competent authority to complete the process under the ongoing preferential issue, as per the release.

The extension has been sought due to limited banking days arising from long weekends during the intervening period, the airline said without disclosing any specific dates.

Ajay Singh, Chairman and Managing Director of SpiceJet, said the fund infusion will open new avenues for the airline, resulting in a more cash-efficient operation, and expanded fleet and network.