SpiceJet plans to raise Rs 200 cr

Mumbai: Low-cost carrier SpiceJet, which attracted a Rs 380-crore investment from US billionaire Wilbur Ross last year, is now planning to raise close to Rs 200 crore before the end of the current financial year, said a person close to the development. The instrument to raise this money is not yet decided, but options like foreign currency convertible bonds (FCCBs) and banks loans are being considered. “The airline’s officials will discuss this at the next board meeting,” he said.
When contacted, SpiceJet’s chief executive officer Sanjay Aggarwal told ET: “Any cash the company might raise will be used to build reserves or to grow the airline.” He declined to elaborate on the issue. SpiceJet is promoted by a group of investors led by the Kansagra family and Delhi-based Ajay Singh.
SpiceJet is one of the two airlines that is making profits in a segment which is estimated to post a cumulative
annual loss of Rs 18,000 crore in the current fiscal.
16/10/09 Mithun Roy/Economic Times

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Categories: SpiceJet Oct 2009