SpiceJet to raise up to Rs5,000 cr, buy new planes

Low-cost carrier SpiceJet on Tuesday said its shareholders have approved a proposal to raise funds of up to Rs5,000 crore.

The shareholders, at the company's 31st Annual General Meeting held in Mumbai, also approved the appointment of promoter Ajay Singh and his wife Shivani Singh as directors, the company said in a regulatory filing.

Besides, the shareholders have also given their nod to the appointment of R Sasiprabhu as an independent director of the company, it said.

Singh, a co-founder of SpiceJet in 2005, took back its control after acquiring the entire 58.46 per cent stake of Kalanithi Maran and Kal Airways Pvt Ltd in February this year. His holding in the company currently stands at 60.32 per cent (See: Marans exit SpiceJet, transfer ownership to Ajay Singh).

Singh said on Tuesday that the airline was looking to place order for new planes this fiscal.

"We will take the best decision in the interest of the company. We hope that we can do it in this financial year," he had said after the AGM, while adding that the response to the request for proposal (RFP) for new aircraft was being evaluated.

The shareholders also approved the airline's plans to raise loans up to Rs5,000 crore through various instruments.

At present, SpiceJet has some 41 planes in its fleet, including 25 Boeing 737s, 14 Bombardier Q400s and two leased Airbus 320 family aircraft.

The airline is believed to be looking to order close to 150 new aircraft.

Remaining profitable for the third straight quarter, SpiceJet posted a net profit of Rs23.77 crore in the three months ended September.

The carrier had a net loss of Rs310.45 crore in the 2014 September quarter.