Mumbai: Domestic carrier SpiceJet on Monday said it has raised Rs 3,000 crore through a Qualified Institutional Placement (QIP). The QIP, which opened on September 16 and closed on September 18, received an overwhelming response from qualified investors and got significantly oversubscribed, demonstrating strong confidence in the company's growth prospects, SpiceJet said in a statement.
It also said the QIP attracted a diverse pool of top-tier institutional investors and mutual funds, including Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore Ltd ODI, Tata Mutual Fund, Discovery Global Opportunity Ltd, among others. In addition to Rs 3,000 crore funding, SpiceJet said it will also receive an additional Rs 736 crore from the previous funding round, further boosting its financial stability and growth plans.
The newly raised capital will be used to operationalise grounded aircraft, acquire new planes, invest in technology, and expand into new markets, the airline said. "The strong response from investors and institutions is a testament to their faith in SpiceJet's potential to rapidly scale and become a formidable player in India's burgeoning aviation market," said Ajay Singh, Chairman and Managing Director of SpiceJet. With this capital infusion, the airline is poised to strengthen its operations, enhance its fleet, and further extend its network to meet growing passenger demand, the airline said.
What is QIP?
QIP or Qualified Institutional Placement is a process through which companies raise money by selling shares or other securities to qualified institutional buyers, instead of raising money, like a public issue, which can be time-consuming and expensive.
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