Airline company SpiceJet raises Rs. 3,000 crores from the Qualified Institutional Placement (QIP). The company today announced its recent fundraising through QIP that took place on 16 September. SpiceJet receives this money from Global investors and mutual funds. The main purpose of the company is to get the funding to rebuild the brand’s authenticity. The company cleared that it wants to focus on winning consumer trust at a deeper level than it is now. SpiceJet is also looking to strengthen its share in the market. SpiceJet is among the most affordable brands in airlines. Let us have a look at its upcoming growth strategy below.
How Will SpiceJet Make A Comeback Through Rs. 3,000 Crore Funding
SpiceJet opened its QIP on 16 September 2024 and closed on 18 September 2024. It successfully gets fundraising of Rs. 3,000 crores to rebuild its reputation and demand. The company will be working on becoming more efficient and reliable. It will also be working on providing better customer service. Along with that, it will also work on expanding its fleet and network. It will focus on taking their services to the place that has the most demand. Apart from that, it will also work on its operations. SpiceJet will be making a comeback with full preparations.
Apart from Rs. 3,000 crore funding, it will also receive Rs. 736 Crore which is yet to be received from the previous funding. Thus, it will be an appropriate amount for the company to achieve its desired targets. SpiceJet’s shares are currently running at Rs. 70.28 per share. If we talk about its performance, it performed well with a rise of more than 6% or 4.12 points. The company’s opening share price was Rs. 67.94 per share. While its closing share price was Rs. 69.80 per share.
SpiceJet has a market cap of 52.49 B with a 52-week high of Rs. 79.90 and a 52-week low of 34. During the funding, Ajay Singh, Chairman and managing director of SpiceJet showed gratitude for the support to the company. As the company was already going through some hardships in finances. Thus, it will be a relief for the company with the opportunity to touch the sky again. The company’s consumers have been falling continuously every year. In August 2024, the company had only 302,000 domestic passengers which almost reduced to half. The company has a fall of 44.2% in domestic passengers. Thus, it is harshly affecting the company’s sales. SpiceJet’s net profit almost decreased by 20% YoY. Due to decreased passengers and profits, SpiceJet felt difficulty in surviving the business.