SpiceJet announces fundraise of ₹3,000 crore via QIP, floor price fixed at ₹64.79 per share; check details

SpiceJet Limited shares in focus on Tuesday, September 17, following the announcement of fundraising via a Qualified Institutional Placement (QIP).

After a gap-down opening, the stock dropped up to 6.3% to an intraday low of ₹72.85 apiece in the early morning trade. SpiceJet shares were trading 5.53% lower at ₹73.49 apiece on the BSE at 9:23 am.

SpiceJet informed the exchanges that its board of directors approved the opening of the QIP issue at a meeting held on September 16. The company also said that the floor price for the QIP has been fixed at ₹64.79 per share, which is a discount of more than 16% compared to Monday's closing price of ₹77.79 apiece for the airline’s shares on the BSE.

According to reports, the company aims to raise up to ₹3,000 crore through the QIP. The base size of the issue is ₹1,500 crore, along with a green shoe option of another ₹1,500 crore. Reports also said that the indicative issue price for the QIP is likely to be ₹61.6 per share, which is a 20.8% discount from Monday's closing price. The book-running lead managers for the issue are Dam Capital Advisors and JM Financial Limited.

The company said in its pre-placement document that it plans to use the funds raised via the QIP to pay statutory dues and outstanding liabilities of creditors, including aircraft and engine lessors, engineering vendors, and financiers. The proceeds will also be used for ungrounding and maintenance of the company’s existing fleet and the induction of new aircraft in the fleet. The proceeds will also be used for payment of employees dues and general corporate purposes

SpiceJet also said that the trading window for dealing in the securities of the company will be closed 48 hours after the closure of the issue and allotment of shares for all ‘Designated Persons’. Designated Persons refers to all employees designated by the Board of Directors who are likely to have access, directly or indirectly, to Unpublished Price Sensitive Information (UPSI) relating to the company.

Earlier on September 13, the company informed the exchanges that it secured approval from its members to raise funds. The company held a postal ballot in which the decision to raise funds received 99.8% votes in its favour. The airline had previously announced its plan to raise ₹2,500 crore through a QIP and ₹736 crore from previous warrants and promoter contributions.