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regular-article-logo Friday, 22 November 2024

SpiceJet offers sale of securities to qualified institutional buyers at steep discount

The Ajay Singh-led airline said in a regulatory filing it may offer a discount of up to 5 per cent on the floor price in line with the approval from its shareholders through a special resolution and in terms of Regulation 176(1) of the Sebi ICDR Regulations

Our Special Correspondent Mumbai Published 18.09.24, 11:10 AM
Representational image

Representational image File picture

Budget carrier SpiceJet has set a floor price of 64.79 per share for the sale of securities to qualified institutional buyers (QIBs) through which it plans to raise up to 3,000 crore.

The Ajay Singh-led airline said in a regulatory filing it may offer a discount of up to 5 per cent on the floor price in line with the approval from its shareholders through a special resolution and in terms of Regulation 176(1) of the Sebi ICDR Regulations.

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Last week, its shareholders had given their approval to the QIP issue.

The floor price represents a discount of nearly 17 per cent to the closing price of the SpiceJet scrip on the BSE on Monday. Shares of the carrier on Tuesday ended with losses of 5.23 per cent at 73.72.

The QIP is crucial for SpiceJet which is facing multiple woes, including financial challenges and the grounding of aircraft.

In its preliminary placement document, SpiceJet has said that proceeds of the QIP will go towards the payment of statutory dues and the settlement or payment of certain outstanding liabilities.

Airport charges

Airport charges are an important element of the commercial aviation ecosystem for infrastructure development and increase in airfares is not linked to a rise in the charges, according to the Airports Council International (ACI), reports PTI.

Against the backdrop of the International Air Transportation Association (IATA) flagging concerns over a steep rise in airport charges, ACI said the charges will remain a critical source of revenue.

As many as 133 airport operators, including Indian airport operators and the Airports Authority of India, are part of the grouping.

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