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SpiceJet, currently operating around 40 planes and holding a 5.5% domestic market share, has secured Rs. 900 crore in funding, bringing its total to Rs. 1,000 crore under ECLGS.
The airline's Chairman, Ajay Singh, has also contributed Rs. 200 crore of his pledged Rs. 500 crore.
The funds will be used to upgrade the fleet, improve punctuality, and cut costs to streamline operations, with Singh personally overseeing major expenses.

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In 2023, SpiceJet carried 83.90 lakh passengers and held a 5.5% domestic market share

SpiceJet gains nearly 4.5% on securing Rs. 900 crore funding

By Pratyaksh Srivastava

Jan 29, 2024

05:12 pm

What's the story

SpiceJet shares surged nearly 4.5% today as the low-cost carrier secured over Rs. 900 crore in funding. The cash-strapped airline has received Rs. 744 crore as part of the total Rs. 2,250 crore being sourced through issuance of securities on preferential basis. The fundraise also includes a Rs. 160 crore instalment from the government's Emergency Credit Line Guarantee Scheme (ECLGS). SpiceJet shares closed at Rs. 64.29, which is 4.40% higher than yesterday.

Controlled expenditure

SpiceJet Chairperson will personally oversee major expenses

SpiceJet has so far received around Rs. 1,000 crore under ECLGS. Its Chairman and Managing Director Ajay Singh has also infused Rs. 200 crore of the Rs. 500 crore he pledged last year. Singh emphasized on prudent spending in a meeting with senior officials and stated he would personally oversee major expenses. The company will prioritize fleet upgrades, enhance on-time performance, and reduce spending to streamline operations.

Information

SpiceJet's current status and market share

Currently operating around 40 planes, SpiceJet is considering bidding for bankrupt Go First. In 2023, SpiceJet carried 83.90 lakh passengers and held a 5.5% domestic market share.