New Delhi: Ajay Singh’s spicejet can get one lifelineNext week airline sources claim they are on the verge of forming a tie-up with “two big investors”. While one entry may invest around Rs 1,000-1,200 crore, the other entry may also invest up to Rs 300 crore, he claims. The airline has been struggling for the past few months due to severe cash crunch due to which only a part of its fleet is in operation and poor performance with around 40-45% of flights being delayed every day. Last week an aircraft lessor had seized the SpiceJet aircraft. It landed in Dubai on payment of dues and earlier several lessors had repossessed the planes for the same reason. LCC is in dire need of funds to remain operational as salaries for October and November are delayed and it is also defaulting on statutory dues like TDS and PF.
“Two big investors Has shown interest in injecting equity in SpiceJet. The airline’s board will meet on Monday (December 11) to decide on the proposal to raise fresh capital through issue equity shares. Initially, an investor was ready to invest Rs 1,000-1,200 crore. Now a second investor has also shown interest in investing in the company and the total deal size may increase to Rs 1,500 crore,” said sources close to the development.
“Both the proposals will be considered by the board on Monday. Currently with a market capitalization of around Rs 4,000 crore, SpiceJet appears to be quite undervalued compared to its peers in the Indian aviation industry. Big enough equity investment The merger could change the fortunes of the 18-year-old airline. Airline sources claimed that the airline has coveted slots and routes at all important Indian and international airports such as Dubai, Thailand, Oman, Colombo and Male, which provide a competitive edge in the market and contribute to the potential for sustained growth. Are.
Regarding the aircraft seizure in Dubai last week, SpiceJet said in a statement: “The Dubai International Financial Center (DIFC) Court has issued a freezing order (order) dated October 20, 2023, in respect of certain engines installed on aircraft with Indian registration mark VT. ) Issued. -SLM. As a result of the above order, the aircraft was grounded at Al Maktoum International Airport, Dubai (DWC), and has remained there since then. The order was passed in favor of SpiceJet in a DIFC Court hearing on December 7, 2023.
“Additionally, the judge has directed an investigation into the losses suffered by SpiceJet as a result of the order. The court has also ordered payment of legal expenses incurred by SpiceJet… The DIFC Court has no order to ban SpiceJet from operating aircraft, including departures from DWC, the statement said.
“Two big investors Has shown interest in injecting equity in SpiceJet. The airline’s board will meet on Monday (December 11) to decide on the proposal to raise fresh capital through issue equity shares. Initially, an investor was ready to invest Rs 1,000-1,200 crore. Now a second investor has also shown interest in investing in the company and the total deal size may increase to Rs 1,500 crore,” said sources close to the development.
“Both the proposals will be considered by the board on Monday. Currently with a market capitalization of around Rs 4,000 crore, SpiceJet appears to be quite undervalued compared to its peers in the Indian aviation industry. Big enough equity investment The merger could change the fortunes of the 18-year-old airline. Airline sources claimed that the airline has coveted slots and routes at all important Indian and international airports such as Dubai, Thailand, Oman, Colombo and Male, which provide a competitive edge in the market and contribute to the potential for sustained growth. Are.
Regarding the aircraft seizure in Dubai last week, SpiceJet said in a statement: “The Dubai International Financial Center (DIFC) Court has issued a freezing order (order) dated October 20, 2023, in respect of certain engines installed on aircraft with Indian registration mark VT. ) Issued. -SLM. As a result of the above order, the aircraft was grounded at Al Maktoum International Airport, Dubai (DWC), and has remained there since then. The order was passed in favor of SpiceJet in a DIFC Court hearing on December 7, 2023.
“Additionally, the judge has directed an investigation into the losses suffered by SpiceJet as a result of the order. The court has also ordered payment of legal expenses incurred by SpiceJet… The DIFC Court has no order to ban SpiceJet from operating aircraft, including departures from DWC, the statement said.
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