Exciting Investment Opportunity: SpiceJet’s Share Sale Set to Captivate Tata Mutual Fund and More | Company News
SpiceJet Attracts Large Investors for $358 Million Share Sale
SpiceJet Ltd., the Indian budget airline based in Gurugram, has managed to draw significant investor interest in its $358 million share sale, including bids from Tata Mutual Fund, according to sources familiar with the matter. This development offers a critical financial boost to the airline, which has been grappling with delayed tax payments and furloughed staff.
Among the key investors showing interest were Authum Investment and Think Investments, along with other institutional entities. The share sale was conducted through a qualified institutional placement at an indicative price of 61.60 rupees ($0.74) per share, representing a 21% discount to the previous Monday’s closing price.
Local media, including The Economic Times, reported that the share sale was oversubscribed, highlighting the robust interest from prominent funds and investment firms. However, representatives from Tata Mutual, Authum, Think, and SpiceJet declined to comment on the transactions.
SpiceJet has faced significant financial challenges, including owing payments to airports, placing employees on unpaid leave, and not making mandatory social security payments since January 2022. Auditors have raised concerns regarding its tax payments, and India’s aviation regulator has increased its scrutiny of the airline.
To manage its financial woes, SpiceJet recently entered into an agreement with Carlyle Aviation Management Ltd. to restructure its leasing obligations, addressing a portion of its 37 billion rupee outstanding liabilities. The airline has also announced plans to use the funds from the share sale to reactivate grounded aircraft and refurbish its fleet. Additionally, SpiceJet has an order for 147 Boeing 737 jets and is exploring wide-body operations for Asia-Europe routes.
The share sale was managed by DAM Capital Advisors Ltd. and JM Financial Ltd., according to a filing.
First Published: Sep 20, 2024 | 12:11 AM IST
Original Story https://www.business-standard.com/companies/news/spicejet-s-share-sale-likely-to-lure-tata-mutual-fund-among-others-124092000013_1.html
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