SpiceJet gets BSE approval for ₹2,242 cr fund infusion

SpiceJet says in a exchange filing today that the company received in-principle approval from the BSE for fund infusion of ₹2,242 crore. The airline will raise fund by the issuance of equity shares and convertible warrants on a preferential basis.

The approval granted by BSE empowers the Indian low cost carrier to move forward with its plans for fund infusion, providing the airline with the financial impetus essential for its growth initiatives. This development closely follows the success of SpiceJet's 39th Annual General Meeting (AGM) on January 10, where the proposal for the fund infusion was overwhelmingly endorsed by the members, the filing says.

Ajay Singh, Chairman and Managing Director of SpiceJet states, “The in‐principle approval from BSE for the fund infusion is a crucial step for SpiceJet as we embark on a journey to enhance our capabilities and strengthen our position in the Indian aviation sector. We believe the fund infusion will open new avenues for SpiceJet, enabling us to capitalise on potential opportunities and contribute to the growth of the aviation sector in India.”

“A significant portion of the fund infusion will be utilised to fuel the airline’s growth, expand its network, bring grounded planes back into operation and position SpiceJet as a more resilient and competitive player in the aviation industry,” the company says.

Meanwhile, SpiceJet is poised to launch non-stop flights connecting Ayodhya with Chennai, Bengaluru, and Mumbai, commencing from February 1, 2024. The airline plans to deploy its 189-seater Boeing 737 aircraft on these routes. As part of the company's ongoing efforts to bolster its network, SpiceJet aims to connect Ayodhya with several other major cities across India in the near future. This expansion aligns with SpiceJet's commitment to offering seamless travel options to passengers and fostering regional connectivity growth, the company adds.

In a recent announcement, SpiceJet revealed its plans to operate a special flight from Delhi to Ayodhya on January 21, 2024. This special flight is tailored to accommodate passengers attending the ‘Pran Pratishta’ ceremony at the Shri Ram Temple on January 22.

Ensuring a hassle-free travel experience for devotees, the company states, “SpiceJet will also operate a return flight on the same day, ensuring a hassle‐free travel experience for devotees.”

In addition to the Ayodhya flights, SpiceJet has unveiled plans for new flights connecting Mumbai with Srinagar, Chennai with Jaipur, and Bengaluru with Varanasi, all scheduled to commence from February 1.

Shilpa Bhatia, Chief Commercial Officer, SpiceJet, said,  “We are happy to announce the introduction of non‐stop flights connecting Ayodhya with Chennai, Bengaluru, and Mumbai. These new flights align with our commitment to enhancing connectivity and providing passengers with convenient travel options. SpiceJet remains dedicated to connecting more Indian cities with Ayodhya soon, offering non‐stop flights for a seamless and comfortable travel experience.”