SpiceJet to hold board meeting on July 23 to consider raising fresh capital through QIP

Low-cost airline, SpiceJet, will hold a board meeting on July 23 to consider raising fresh capital through qualified institutional placement. The company made the disclosure to the exchanges in a filing on July 18.

“A meeting of the Board of Directors of SpiceJet Limited (the “Company”) will be held on July 23, 2024 (Tuesday), inter-alia, to consider and approve raising fresh capital through issue of eligible securities to qualified institutional buyers by way of qualified institutional placement under the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018 and any other methods including by way of further issue, in accordance with the relevant provisions of applicable laws and subject to approval of the shareholders of the Company and other applicable regulatory and contractual approvals, as may be required,” the company said.

Low-cost airline SpiceJet on July 15 reported a six-fold surge in its net profit to Rs 119 crore for the fourth quarter ended March 31, 2024. Its EBITDA (earnings before interest, tax, depreciation and amortisation) during April-June 2024 rose to Rs 386 crore, compared with Rs 344 crore in the year-ago period.

Ajay Singh, Chairman and Managing Director of SpiceJet, said, “The results reflect our relentless efforts to enhance operational efficiency and our commitment to turning around the company’s fortunes. As we move forward, we are exploring opportunities to raise fresh funds to further bolster our growth plans.”

Meanwhile, the company’s Head of Finance and Chief Financial Officer (CFO), Ashish Kumar resigned from the position to pursue other opportunities.

The airline announced the appointment of Joyakesh Podder as the new Head of Finance, designated as deputy CFO of the company from July 15. Kumar was appointed as the CFO in September 2022.

Podder is a chartered accountant (CA) with over 30 years of experience in large organisations like PwC, Reliance, Mahindra, Go Air, SpiceJet etc. in aviation, hospitality and telecom sectors.