Mumbai: Low cost carrier SpiceJet will raise up to Rs5000 crore in loans, as it looks to expand its fleet.
In its annual report, the company said it wanted to create free reserves for up to ?5,000 crore through loans by pledging its assets through various sources for business purposes.
In March, the low-cost carrier placed an order for 42 Boeing 737 Max aircrafts, valuing the deal at up to $4.4 billion.
CFO Kiran Koteshwar had earlier said in July the company plans to place an order, which would be its biggest ever, by the end of this financial year, and would look to raise fresh equity or debt to pay for the planes.
SpiceJet also said it could invest up to ?100 crore for possible acquisitions, as it looks to improve its cost-effectiveness and profitability.
“The company is exploring various opportunities in the aviation sector and allied activities to ensure cost-effective operations and profitability. To exploit these opportunities, the company may invest in other body corporate by way subscription, purchase or otherwise,” the airline said.
SpiceJet has seen a turnaround since new Chairman Ajay Singh took charge in January. Despite losing market share, the airline was able to retain key routes and started re-building operations after the change of control and ownership.
03/12/15 Varun Aggarwal/Business Line
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In its annual report, the company said it wanted to create free reserves for up to ?5,000 crore through loans by pledging its assets through various sources for business purposes.
In March, the low-cost carrier placed an order for 42 Boeing 737 Max aircrafts, valuing the deal at up to $4.4 billion.
CFO Kiran Koteshwar had earlier said in July the company plans to place an order, which would be its biggest ever, by the end of this financial year, and would look to raise fresh equity or debt to pay for the planes.
SpiceJet also said it could invest up to ?100 crore for possible acquisitions, as it looks to improve its cost-effectiveness and profitability.
“The company is exploring various opportunities in the aviation sector and allied activities to ensure cost-effective operations and profitability. To exploit these opportunities, the company may invest in other body corporate by way subscription, purchase or otherwise,” the airline said.
SpiceJet has seen a turnaround since new Chairman Ajay Singh took charge in January. Despite losing market share, the airline was able to retain key routes and started re-building operations after the change of control and ownership.
03/12/15 Varun Aggarwal/Business Line
