SpiceJet Seeks Shareholder Nod to Raise Up to 50 Billion Rupeesby
SpiceJet looking to buy more than 150 planes to fuel growth
Budget carrier looking for additional working capital
SpiceJet Ltd. is seeking shareholder approval to raise as much as 50 billion rupees ($750 million) in loans, as the Indian budget carrier looks to order more than 150 planes in one of the world’s fastest growing aviation markets.
The company, which has turned around since a near-collapse last year, is seeking to arrange additional working capital and trade financing to improve short-term liquidity, it said in its annual report for the financial year that ended March 31.
SpiceJet is in talks to buy more than 100 narrow-body planes from Boeing Co. and Airbus Group SE, as well as over 50 regional jets from suppliers including Bombardier Inc. The orders may be finalized this fiscal year. It has also received interest from Gulf airlines looking to buy a stake, the company said earlier this week.
SpiceJet is the world’s best-performing airline stock, rising about 300 percent so far this year, topping the Bloomberg Intelligence Global Airlines Competitive Peers index. The shares were up 0.4 percent at 68.90 rupees as of 9:50 a.m. Friday in Mumbai.
The carrier expects India’s domestic air travel market to grow about 20 percent in the next eight to 12 months, which will help sustain current pricing levels and improve them further, it said in the annual report posted on its website.