Cash-strapped SpiceJet will raise more than Rs 2,250 crore through the issue of up to 130 million convertible warrants and 320.8 million fresh equity shares at an issue price of Rs 50 each.

SpiceJet will issue convertible warrants to 64 allottees, including Prabhudas Lilladher Advisory Services, LKP Finance, Martina Developers, and Fincon. The issue price of Rs 50 is 18.4 per cent lower than the SpiceJet stock price of Rs 61.3 when markets closed on December 11.

In the quarter ended September, the airline shrank its net loss to Rs 431.54 crore from Rs 837.8 crore a year ago.

With the announcement of its plans to raise funds and its financial results for the second quarter, the shares of the airline went down 9.7 per cent from Rs 61.49 to Rs 55.5 on December 12. Promoters, led by Singh, hold a 56.5 per cent stake in the company, and, out of this, 37.9 per cent is pledged with various lenders.

“The proposed fund infusion will go a long way in enhancing the market reach of SpiceJet and will also provide a deep financial foundation. The capital raised will be instrumental in funding expansion initiatives, including fleet enhancement, route network expansion and technological advancements,” the release said.

The budget carrier has run dry on cash as it grapples with a number of legal cases over the non-payment of dues involving its former promoters as well as lessors. In July, the company said Singh would infuse Rs 500 crore in lieu of fresh equity shares or convertible instruments or both.