Low-cost airline SpiceJet has announced that it will raise Rs 2,500 crore to finance its working capital needs.
“The intensity with which the second wave of Covid-19 has struck and the unimaginable havoc it has caused, both to the already battered travel industry and in general, will take time to heal. To ensure our long-term growth and sustainable operation, we have decided to raise funds of up to Rs 2,500 crore. These funds will be used to significantly strengthen our balance sheet, ”said Ajay Singh, president and CEO of the company.
SpiceJet is India’s third largest airline after Go First (formerly GoAir) and IndiGo, which also announced it would raise capital. As Go First is in the process of going public, IndiGo has announced that it will increase Rs 3000 crore.
The airline reported a net loss of Rs 235.3 crore in the fourth quarter of FY21, compared to a loss of Rs 807.1 crore in the same quarter of last year as it continues to post a compensation for the immobilization of the Boeing 737 MAX as profit.
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