SpiceJet may raise Rs400 crore through rights issue
25 Jul 2011
Mumbai: Low-cost carrier, SpiceJet, may seek to raise funds through a share offering, its top official has said. CEO Neil Mills did not disclose the size of the amount, but in an interview with a news organisation indicated it might be in the region of Rs400 crore.
"A rights issue can be one option the company might consider," said Mills. He also said that merchant banker Enam would be the advisors.
He said the carrier hopes to conclude the process by end-December.
Promoter Kalanithi Maran pledged a large chunk of his holding ten days back to raise Rs200 crore for the cash-strapped airline.
According to market speculation Maran might look for an exit from SpiceJet as he may not have the deep pockets required to be part of an airline's cyclical business.
The carrier made a profit of Rs101crore in FY10-11 but posted a loss of Rs59 crore in its last quarter.