The shares of SpiceJet climbed more than 4 per cent on Monday after the
carrier said it would issue shares to Carlyle Aviation as part of its restructuring to convert a portion of its dues into equity.

The shares also rose after reports emerged that its chairman and promoter, Ajay Singh, was planning to sell over 10 per cent of his stake.

The stock ended at ₹63.99, a gain of 4.12 per cent. During intra-day trades, it rose 5.53 per cent to ₹64.86.

Last week, SpiceJet said it has entered into a term sheet with Carlyle Aviation Management Ltd to restructure part of its dues on account of aircraft lease rentals, amounting to $137.68 million, which will be adjusted to $97.51 million upon settlement or waivers.

The airline will issue the shares at ₹100 apiece.

Lessors will also consider purchasing compulsorily convertible debentures of SpiceXpress & Logistics Private Limited (a subsidiary) in exchange of their lease arrears.

This will rank senior to all other existing and future equity or equity-linked securities of SpiceXpress.

In a presentation last week, SpiceJet said it has prepared a road map to resolve its ‘hurdles’.

It proposes to raise ₹2,500 crore through qualified institutional placement (QIP) and ₹736 crore through previous warrants and promoter infusion.

The airline attributed factors such as reduction in fleet, and subsequent grounding, higher cost of working capital and outstanding statutory dues as the factors for its current problem.

According to the presentation, its operational fleet reduced to 28 planes in 2024 against 74 aircraft in 2019, while 36 aircraft remained on the ground.

The airline added that it will resort to fleet ungrounding, new fleet induction and liability settlement with existing lessors.