SpiceJet To Get ₹500 Crore From Promoter Ajay Singh

SpiceJet To Get ₹500 Crore From Promoter Ajay Singh
SpiceJet To Get ₹500 Crore From Promoter Ajay Singh

by Tanushree Jaiswal Last Updated: Jul 13, 2023 - 04:50 pm 252 Views

Ajay Singh, the promoter of SpiceJet, has announced plans to invest ₹500 crore in the airline. The decision was made during a recent board meeting as part of efforts to address the company's financial challenges. The funds will be raised through new equity or convertible instruments.

SpiceJet has been facing financial difficulties, resulting in the grounding of almost half of its fleet of 64 aircraft. Some aircraft lessors have approached the Directorate General of Civil Aviation (DGCA) to request the deregistration of their planes due to unpaid lease rentals.

The investment by Ajay Singh is expected to help SpiceJet access additional credit facilities worth ₹206 crore under the government's Emergency Credit Line Guarantee Scheme. This financial boost will provide much-needed liquidity and support the airline's operations.

Ajay Singh, Chairman, and Managing Director of SpiceJet, expressed confidence that the investment will enable the airline to accelerate its growth plans and take advantage of new market opportunities. He emphasized SpiceJet's commitment to building a sustainable and profitable business. Singh believes that the airline, with its strong brand and 18 years of service, will thrive in the long term.

SpiceJet has already started utilizing the $50 million received through the Emergency Credit Line Guarantee Scheme and its own cash reserves to bring back some grounded aircraft into operation. The airline expects more planes to rejoin its fleet in the near future.

The capital infusion from Ajay Singh is seen as a significant step toward strengthening SpiceJet's financial position and ensuring its long-term sustainability. The investment demonstrates confidence in the airline's future success and marks an important milestone in its journey toward sustained growth.

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Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


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