SpiceJet board to consider fund-raising proposal on November 18

According to reports by Business Standard and The Hindu, budget carrier SpiceJet announced on Friday that its company board will consider and approve a proposal to raise fresh capital on the upcoming November 18. In recent times, the airline has been facing severe financial difficulties and operational hurdles, due to which it has also reduced its flights.

As stated by the company in a regulatory filing, fresh funds or capital may be raised through equity shares, preference shares, debt securities, and other eligible instruments, by way of a preferential issue, qualified institutions placement, or any other method.

Amid this announcement, a surge was seen in the company's shares on BSE, and in late afternoon trade, the company's shares rose by about 5 percent to reach ₹8.67 per share.

On the other hand, according to recent DGCA data, the airline's domestic market share was 1.2 percent in the month of August, which dropped to 0.6 percent in the month of September.

It is hoped that this fund-raising proposal by the airline company may help in facing the financial challenges. Recent DGCA figures have shed light on the airline's shrinking market share, which reflects the company's current status. This board meeting is scheduled to be held on November 18, in which final approval will be given to the above matters.