The Board of Directors of SpiceJet Ltd on Tuesday approved the raising of fresh capital of over Rs 2,250 crore (approximately $270 million) through the issuance of equity shares to financial institutions, FIIs, HNIs and private investors.

In a unanimous decision, the Board considered and approved issuance of equity shares/equity warrants under private placement basis, subject to shareholder and regulatory approvals as may be required. The fundraise is aimed at fortifying the airline’s financial strength and accelerating its growth trajectory, it said in a statement. “The capital raised will be instrumental in funding operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements,” it said.

“This is a significant fund raise and it is designed to strengthen SpiceJet’s financial position, enhance operational capabilities, settle outstanding issues and position the airline again for sustained growth in the dynamic aviation sector,” said Ajay Singh, Chairman and Managing Director, SpiceJet. 

He expressed optimism about the positive impact these developments would have on the airline’s future. “We are confident that this capital raise will help us achieve our goal of building a world class airline in India. I personally thank all our stakeholders, all those who work for SpiceJet and all those who work with SpiceJet and who have patiently waited for this day. They have allowed us the time and opportunity to overcome a difficult phase in our history, and we are grateful to them,” Ajay Singh said.