SpiceJet in talks with investors for fresh capital

Shares in the carrier were down 2.37 per cent by 3:45 p.m. following the statement, against a 0.58 per cent rise in the Sensex and erasing some of Friday’s gains.

By: Reuters | New Delhi | Published: November 25, 2014 1:37:58 am

SpiceJet is in “exploratory and preliminary stage” talks with investors about raising fresh capital that it needs to return to profitability, the budget airline said in a regulatory filing on Monday.

SpiceJet, which this month reported its fifth consecutive quarter of losses, has been trying to raise fresh capital for much of this year. It said in May it was in “advanced” talks for capital infusion but no deal materialised.

“We wish to clarify that a few parties have approached us and evinced interest in making investments into SpiceJet Limited (the “company”), as the company has been exploring various options for raising fresh capital,” the airline said.

The talks are at an early stage so it would be improper to comment on the specifics of any possible stake sale, it said.

Shares in the carrier were down 2.37 per cent by 3:45 p.m. following the statement, against a 0.58 per cent rise in the Sensex and erasing some of Friday’s gains.

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