The SpiceJet board will decide on raising capital on July 12 by issuing preferred equity shares or convertible instruments.
The SpiceJet board announced in a regulatory filing late Sunday that the board of directors of the company would meet on July 12 (Wednesday) to consider and approve, among other things, options for raising capital through the issue of equity shares and/or convertible securities on a preferential basis, in accordance with the applicable laws’ pertinent provisions.
According to the statement, the decision to raise capital is contingent on shareholder approval and receiving all necessary regulatory permissions.
In the meantime, the Supreme Court on Friday ordered low-cost airline to pay former promoter Kalanithi Maran the whole arbitral sum of 380 crore in their legal battle.
The struggling airline is experiencing a dire financial situation and has suffered significant losses as a result of COVID-19.
SpiceJet’s combined net loss for the first three quarters of FY23 was Rs 1,507 crore. Results for the fourth quarter have not yet been made public.
On June 30, SpiceJet’s board declared that the absence of a significant member of its audit committee had forced it to postpone the release of its financial statements for the fiscal year 2022–2023.
In FY19, it recorded a combined net loss of 302 crore, which was followed by losses of 937 crore, 1,030 crore, and 1,744 crore in FY20, FY21, and FY22.
Additionally, the airline is caught up in legal battles with lessors.
SpiceJet’s stock price on Friday fell 2.93% to close at 29.50 per share on the BSE.
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