The Board of Directors of SpiceJet, on 12 December, considered and approved to raise Rs 2,254 crore of fresh capital through the issue of up to 13 crore convertible warrants and 32.08 crore fresh equity shares at an issue price of Rs 50 each.

The company will issue convertible warrants to 64 allottees, including LKP Finance, Fincon, Prabhudas Lilladher Advisory Services, and Martina Developers.

The issue price of Rs 50 Rs is 18.4% lower than the closing price of Rs 61.3 on 11 December.

In August, promoter Singh infused Rs 500 crore into the company, saying, “I firmly believe in the potential of our airline, and I am pleased to have contributed to its growth by infusing Rs 500 crore into the company. This infusion will help bolster our efforts to revive our grounded planes, for which we have been working tirelessly, strengthening our fleet and expanding our cargo operations.”

The low-cost carrier has been facing a severe cash crunch as it grapples with several legal cases over non-payment of dues that involve its former promoters as well as aircraft lessors. The company has also been experiencing flight delays every day as only a part of its fleet is operational.

According to a report generated by the Directorate-General of Civil Aviation (DGCA), between May – October 2023, 189,634 passengers had been affected by the flight delays by more than 2 hours. The company had to pay Rs 3.78 crore in compensation to the passengers during this period.

During May-October 2023, the airline had also wrongfully denied boarding to 991 passengers and paid Rs 18.11 lakh in damages.