SpiceJet Achieves Fundraising Goal, Cites Strong Investor Demand

Indian carrier SpiceJet has quickly reached its target in its latest fundraising exercise, which represents a vote of confidence by investors in the carrier’s prospects.

The airline offered a qualified institutional placement (QIP) of shares to raise INR30 billion ($359 million). The QIP opened on Sept. 16, and closed on Sept. 18. It “received an overwhelming response from investors” and was “significantly oversubscribed,” the carrier said.

In addition, SpiceJet announced that it will receive INR7.4 billion from a previous funding round. The airline has also recently conducted debt-to-equity swaps to settle payment disputes with various lessors.

“The strong response from investors and institutions is a testament to their faith in SpiceJet’s potential to rapidly scale and become a formidable player in India’s burgeoning aviation market,” said Ajay Singh, SpiceJet’s chairman and managing director.

SpiceJet confirmed that the new capital will help it restore its grounded aircraft to service, as well as acquiring new aircraft. It will also aid the airline’s goal to expand into new markets. The carrier has previously stated its goal to return 28 of its 36 grounded aircraft to service.

The list of institutional investors and mutual funds that participated in the QIP included Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore Ltd ODI, Tata Mutual Fund, Discovery Global Opportunity Ltd, Societe Generale ODI, Authum Investment and Infrastructure Ltd, Bandhan Infrastructure Fund, White Oak, Carnelian Bharat Amrikaal Fund, 360 ONE Equal Opportunity Fund and The Jupiter Global Fund.