Thu Sep 19 12:10:13 UTC 2024: ## SpiceJet Secures Oversubscribed Funding Through Share Sale to Institutional Buyers

**New Delhi, India:** Struggling airline SpiceJet has successfully secured oversubscribed funding through a qualified institutional placement (QIP) of shares worth ₹3,000 crore. The airline, facing financial and legal challenges, aims to utilize the funds for clearing statutory dues and settling liabilities to creditors.

Sources reveal that the QIP received strong participation from a diverse group of investors, including family offices and institutional funds. Notable investors include family offices belonging to prominent figures like Madhu Kela, Akash Bhanshali, Sanjay Dangi, and Rohit Kothari.

SpiceJet’s preliminary placement document highlights the airline’s financial constraints, stating that they have been unable to consistently fulfill statutory liabilities. This includes over ₹135 crore in unpaid provident fund payments from April 2020 to August 2023. As of September 15, the airline’s total statutory dues amounted to ₹601.5 crore, with significant portions owed towards TDS, employee provident fund, and GST.

The proceeds from the QIP will be primarily allocated towards clearing these statutory dues. Additionally, the airline plans to use the funds to settle liabilities with creditors, including aircraft and engine lessors, engineering vendors, and financiers.

While SpiceJet has not issued an official statement, the successful oversubscription of the QIP signifies a positive step towards addressing the airline’s financial challenges. It remains to be seen how this funding will impact the airline’s future operations and its ability to navigate the ongoing legal and financial headwinds.

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