 "SpiceJet sets a floor price to raise Rs 3,000 crore amid financial troubles and declining stock prices.")
SpiceJet, the budget airline, has announced a floor price of Rs 64.79 per share for selling securities to qualified institutional buyers. The airline aims to raise up to Rs 3,000 crore, following approval from its shareholders last week. According to their placement document submitted to the BSE, SpiceJet might offer a discount of up to 5% on this floor price. The funds raised will assist the airline in managing its various financial obligations amidst ongoing challenges, including legal issues and aircraft groundings. Recently, SpiceJet’s shares dipped 5.23%, closing at Rs 73.72 on the BSE.
SpiceJet Sets Floor Price for Fundraising Amid Financial Struggles
In a bid to raise up to Rs 3,000 crore, SpiceJet has established a floor price of Rs 64.79 per share for the sale of securities aimed at qualified institutional buyers. This decision follows shareholder approval received last week for the fundraising proposal.
According to the preliminary placement document submitted to the Bombay Stock Exchange, the airline may offer a discount of up to 5 percent on the set floor price, as authorized by shareholders during a postal ballot on September 13, 2024. The shares will only be available to eligible Qualified Institutional Buyers (QIBs).
SpiceJet, known as a budget carrier, is currently facing several challenges, including financial difficulties, ongoing legal issues, and the grounding of multiple aircraft. The funds raised will be crucial to help the company meet its various financial obligations.
On Tuesday, SpiceJet’s shares experienced a decline of 5.23 percent, closing at Rs 73.72 on the BSE, highlighting the airline’s current Market struggles.
This latest move is part of SpiceJet’s efforts to navigate through turbulent times and stabilize its operations.
Image Caption: Spicejet (Photo: Wikipedia)
Date Updated: September 17, 2024 | 7:11 PM IST
Read more to stay updated on SpiceJet and its financial strategies.
What is the Rs 3,000 crore issue by SpiceJet about?
SpiceJet is trying to raise Rs 3,000 crore by selling shares to investors.
What is the floor price for the shares?
The floor price set for the shares is Rs 64.79 each.
Why is SpiceJet raising this money?
SpiceJet needs the funds to improve its operations and pay off debts.
When does this share issue begin?
The issue starts soon, but the exact date will be announced by the company.
How can I buy these shares?
You can buy the shares through a stockbroker or an online trading platform once the issue is open.
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