India's SpiceJet to raise $270 mln, reports smaller Q2 loss (updated)

Spicejet

12/12/2023 09:43

(Adds details, background, second-quarter results)
       BENGALURU, Dec 12 (Reuters) - India's low-cost carrier
SpiceJet  SPJT.BO  said on Tuesday it would raise 22.50 billion
rupees ($269.9 million) through the issue of preferential shares
and warrants as the troubled airline seeks to return operations
to full capacity.
    The airline will issue shares worth 16 billion rupees and
warrants convertible to shares worth 6.5 billion rupees, it said
in an exchange filing.
    The fundraise, its third this year, will help SpiceJet
restore its grounded fleet of 25 jets and clear unpaid salaries.
    Once India's second-largest airline, SpiceJet has been
struggling to pay lessors for over a year, facing legal troubles
over unpaid dues to former owner Kalanidhi Maran and Credit
Suisse, and lessors looking to de-register aircraft.
    The cash-strapped carrier said its second-quarter loss
narrowed to 4.32 billion rupees from 8.38 billion rupees a year
earlier by roughly halving its operating expenses.
    Its revenue declined roughly 30% to 13.48 billion rupees in
the three months to Sept. 30.
    SpiceJet's shares, which has risen around 40% since it first
said it would consider raising funds last Wednesday, fell 8%
after the announcements.

($1 = 83.3620 Indian rupees)

 (Reporting by Nandan Mandayam and Varun Vyas in Bengaluru;
Editing by Janane Venkatraman)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))