SpiceJet raises Rs 1,060 crore via issue in 2024

What SpiceJet announced

SpiceJet said it has raised an additional Rs 316 crore through its preferential share issue, taking the total funds raised under the exercise to Rs 1,060 crore. The airline disclosed the update in a statement, positioning it as a continuation of the capital-raising plan it outlined earlier. The latest inflow follows a first tranche of Rs 744 crore that the carrier said it received in January through allotment of securities on a preferential basis. Taken together, the two tranches add up to Rs 1,060 crore, based on the figures cited by the company. The fundraise is part of a broader capital plan that SpiceJet had communicated in December. On December 12, the airline said it would raise fresh capital of Rs 2,250 crore through issuance of securities. Separately, SpiceJet also disclosed that it received in-principle approval from BSE for a fund infusion of INR 2,242 crore following shareholder approval at its AGM.

Key approvals and the February 21 committee meeting

SpiceJet said its Preferential Allotment Committee of the Board of Directors convened on February 21, 2024, and approved fresh allotments as part of the preferential issue process. According to the statement, the committee approved the allotment of 4.01 crore equity shares on a preferential basis to two investors, including Aries Opportunities Fund Limited. The committee also sanctioned the allotment of 2.31 crore warrants to four investors, including Elara India Opportunities Fund Limited. These warrants provide investors the option to apply for and be allotted an equivalent number of equity shares of the airline. The company’s communication focused on the committee’s approvals and the aggregate capital raised so far. SpiceJet’s statement also reiterated the total investments raised under the preferential issue at Rs 1,060 crore. The update suggests the company is executing the fundraise in stages, with separate approvals and allotments.

The January tranche and how it was structured

In January, SpiceJet said it completed the first tranche of capital infusion worth Rs 744 crore through preferential allotment of shares and warrants. The airline said its Board of Directors met on January 25, 2024 and approved the allotment of shares and warrants on a preferential basis. For the first tranche, SpiceJet disclosed that the board approved the allotment of 5.55 crore equity shares on a preferential basis to 54 subscribers. It also approved the allotment of 9.33 crore warrants on a preferential basis to Elara India Opportunities Fund Limited and Silver Stallion Limited. SpiceJet’s detailed tranche note also mentioned the equity shares carried a face value of Rs 10 each and were issued at an issue price of Rs 50 each for that tranche. The warrants were described as carrying the option to apply for an equivalent number of equity shares, also referenced at the same face value and issue price in the tranche disclosure. SpiceJet said it had requested additional time from the competent authority to complete the process for the remaining subscribers, citing limited banking days due to long weekends.

What the overall fundraise plan looks like

SpiceJet’s fundraising disclosures point to an announced intent to raise up to Rs 2,250 crore through issuance of securities, communicated on December 12. A separate exchange-linked disclosure noted that the airline planned to raise money through issuance of securities to 64 investors. Another update from the company said it received in-principle approval from BSE for issuance of equity shares and warrants convertible into equity shares on a preferential basis, enabling a fund infusion of INR 2,242 crore. That BSE approval announcement followed the company’s 39th Annual General Meeting held on January 10, where members approved a proposal for a fund infusion of INR 2,242 crore. The presence of both figures, Rs 2,250 crore and INR 2,242 crore, reflects how the fundraise has been described across company statements and filings. What remains consistent is that the company is raising capital through a combination of equity shares and warrants under a preferential route. The funds have been framed by the airline as supporting operational plans such as bringing aircraft back into operation, network expansion and other initiatives.

Stock market reaction on the fundraise update

SpiceJet’s shares rose following the announcement of the additional Rs 316 crore raised. In one trading update cited alongside the development, the stock surged 7.66% to hit an intraday high of Rs 70.60 versus the previous close of Rs 65.58. In another market datapoint reported around the same development, shares were trading 6.36% higher at Rs 69.75 apiece at 09:59 a.m., while the benchmark Nifty 50 was down 0.43%. These figures highlight a positive immediate reaction in the stock to the update on capital inflows and allotment approvals. In an earlier tranche-related report, SpiceJet shares were also noted as closing at Rs 61.58, down 2.01% from the previous close, with a cited 52-week high of Rs 69.20 and low of Rs 22.65 at that time. The price points appear across different updates tied to separate dates within the fundraise timeline.

Timeline of disclosures and decisions

SpiceJet’s preferential issue has progressed through multiple disclosed steps spanning December to February. The initial plan to raise fresh capital of Rs 2,250 crore was communicated on December 12. Shareholders approved the fund infusion proposal at the AGM held on January 10, 2024. The company then said it received in-principle approval from BSE on January 15, 2024, for the preferential issuance route supporting the proposed infusion. The first tranche was approved by the board in a meeting on January 25 and described as completed at Rs 744 crore in late January. The subsequent committee meeting on February 21 approved additional allotments of equity shares and warrants and the company said it had raised another Rs 316 crore, taking total raised to Rs 1,060 crore. The staged approach underscores how preferential issues often proceed through sequential approvals, allotments and receipts of money.

Summary table: funds raised, instruments, and key dates

Market impact: what this means for SpiceJet and investors

The immediate market impact in the reported trading session was a sharp move higher in the stock price, alongside a weaker benchmark index reading in one datapoint. From a company funding perspective, the two tranches disclosed so far take the total raised under the preferential issue to Rs 1,060 crore. The instruments used include equity shares and warrants, with the warrants carrying the option to convert into an equivalent number of equity shares. For existing shareholders, this structure matters because equity allotments and future warrant conversions can increase the share count over time. For the company, preferential proceeds provide cash inflows without relying solely on operating cash generation in the short term. SpiceJet has linked the capital to operational initiatives including fleet enhancement, route network expansion and technology-related initiatives, and in another note, to bringing grounded planes back into operation.

Analysis: why the preferential issue is being watched

SpiceJet’s fundraising updates are closely tracked because the airline has acknowledged facing multiple headwinds, while also outlining plans tied to operations and capacity. Preferential issues allow listed companies to raise capital from identified investors through board and shareholder approvals, and exchanges monitor these issuances through filings and approvals. The disclosed investor set includes funds such as Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited, reflecting participation by institutional-style pools of capital. The staged nature of the fundraise, with a first tranche in January and an additional amount announced after the February 21 committee meeting, shows that receipts can be spread out as allotment steps are completed. The company’s request for additional time due to limited banking days also illustrates operational constraints that can affect timelines even after approvals are in place. Investors typically assess such fundraises not only by the headline amount but also by the instruments issued, pricing where disclosed, and the pace of execution.

Conclusion

SpiceJet’s latest disclosure adds Rs 316 crore to its preferential issue proceeds, taking the total raised to Rs 1,060 crore after the first tranche of Rs 744 crore in January. The airline has also outlined a broader capital-raising plan announced in December and referenced an in-principle BSE approval connected to a proposed fund infusion. The next milestones, based on the company’s earlier statements, would be completion of further allotments from remaining subscribers under the ongoing preferential issue process and any subsequent filings that detail additional tranches or conversions.