Monday 24 November 2014

SpiceJet Holds Talks For Fresh Capital

India based private airliner SpiceJet Ltd said it is in "exploratory and preliminary stage" talks with investors about raising fresh capital.

In a a regulatory statement, the  budget airline said a few parties had approached it about making an investment but because the talks were at an early stage it would be improper to comment on the specifics of any possible stake sale.

Aviation authorities are closely watching the crisis deepen at SpiceJet which needs immediate infusion of funds to survive.

According to Centre for Asia Pacific Aviation, SpiceJet LCC needs $250 million, about Rs 1,500 crore, funding to stabilize operations with about Rs 1,000 crores immediately required. "SpiceJet's turnaround is dependent on solid recapitalization.

SpiceJet, which has lost money for five consecutive quarters, has been trying to raise new money for much of this year.

Their Q2 FY 15 performance is positive compared to Q2 FY 14 but not significant enough to draw investor or market attention. However, positive changes in the front end are visible and encouraging," CAPA says.

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