SpiceJet Stock Surges 10% Following ₹3,000 Crore QIP Fundraise

SpiceJet shares surged by up to 10 percent on September 23 after the airline raised ₹3,000 crore by selling shares to qualified institutional buyers (QIBs), providing a significant boost for the struggling low-cost carrier.

The airline announced it received approval to raise funds via a postal ballot held on September 13, with the resolution receiving 99.8 percent backing. Previously, SpiceJet had disclosed plans to raise ₹2,500 crore through a QIP, alongside ₹736 crore from prior warrants and promoter contributions.

Foreign investors, including Société Générale - ODI, Goldman Sachs (Singapore) Pte - ODI, Discovery Global Opportunity (Mauritius) Ltd, Authum Infrastructure and Investment, and Troo Capital, have been allocated shares in the airline's oversubscribed QIP.

SpiceJet will also receive an additional Rs 750 crore from prior funding. "This fundraise marks a pivotal moment for SpiceJet as we aim to scale new heights in the aviation industry," said Chairman and Managing Director Ajay Singh. With this new capital, the airline is "determined to paint the skies red once again."

The proceeds from this QIP will be used to address liabilities, restructure leases, and expand the fleet by reviving grounded aircraft and acquiring new ones. The airline's cash crunch is reflected in recent aviation data, showing its market share dropped to 3.1 percent in July.

Additionally, SpiceJet has placed around 150 cabin crew members on Leave Without Pay (LWP) and had to cancel flights from Dubai.

According to the Directorate General of Civil Aviation (DGCA), SpiceJet's domestic market share fell to a record low of 2.3 percent in August, down from 5.6 percent at the start of the year. This decline highlights ongoing financial challenges, compounded by disputes with lessors and technical issues that have grounded a significant portion of its fleet.

At 10:50 am, SpiceJet shares were trading over 7 percent higher at Rs 70.80 on BSE. The stock has rallied 100 percent in the past year, more than doubling investors' capital, while the Sensex rose 28 percent during the same period. Year-to-date, SpiceJet's shares have increased about 16 percent, compared to a 17 percent rise in the Sensex.