Chairman Ajay Singh may sell over 10% stake in SpiceJet to raise funds

New Delhi, Sep 8 (PTI) SpiceJet promoter and chairman Ajay Singh may offload more than 10 per cent stake in the struggling carrier as part of the latest funding round that is expected to close by the end of September, according to sources.

The budget carrier -- which is grappling with multiple woes, including financial challenges, legal battles and grounding of aircraft -- is looking to raise money that will help it meet various obligations.

One of the sources said that Singh could offload up to a 15 per cent stake in the airline if certain conditions are conducive.

Singh, who is the Chairman and Managing Director, would be offloading around 10 per cent shareholding in the airline and the quantum could go up, the second source said.

For the proposed QIP (Qualified Institutional Placement), there is already a commitment for up to Rs 2,000 crore and the airline is in discussions with potential investors. Meetings with investors have been held in India and overseas, the sources in the know said.

There was no official comment from SpiceJet.

The funding round is expected to be completed by the end of September.

At the end of June 2024, the promoter group had a little over 47 per cent stake in the carrier, as per data available on the BSE.

SpiceJet, which had a fleet of 74 planes in 2019, is currently operating around 20 aircraft.

On Friday, the airline said it plans to mop up Rs 3,200 crore through QIP, warrants and capital infusion by the promoter, the airline said in a presentation on Friday.

The funds will be utilised to take back the grounded fleet in operations, liability settlement, new fleet induction and other general purposes.

"Spicejet plans to raise Rs 2,500 crore through QIP and Rs 736 crore through previous warrants and promoter infusion, the airline said in an investor presentation," it had said in the presentation to investors.

In January, SpiceJet could raise only Rs 1,060 crore through preferential issues against its Rs 2,250 crore funding plan that was announced in December 2023. PTI