SpiceJet Promoter Ajay Singh will infuse INR 500 crore into the low-cost carrier by way of subscribing fresh equity shares and/or convertible instruments, the troubled airline has announced.
In a release, the airline stated that the infusion of fresh capital would substantially strengthen the company’s financial position and help sustain growth and long-term success.
Ajay Singh, Chairman and Managing Director, SpiceJet said the investment would allow the airline to accelerate its growth plans and, capture new opportunities in the market, grow its revenue and profits.
The fresh equity infusion will help it access additional credit facilities of INR 206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS). The cash-strapped carrier is already utilising approximately INR 40 crore of ECLGS funds and its cash to revive its grounded aircraft.
Two of SpiceJet’s grounded aircraft, a Boeing 737 jetliner and a Q400 Regional Transport Aircraft, have been operationalised. It is looking to induct more aircraft to meet burgeoning air traffic demand in India.
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