SpiceJet looks to raise Rs 400 crore through a share offering

Mumbai: Low-cost carrierSpiceJet is
looking at raising funds through a
share offering, its top official said.
PromoterKalanithi Maran pledged a
large chunk of his holding 10 days
back to raise Rs 200 crore for the cash-strapped airline.
"A rights issue can be one option the
company might consider," SpiceJet
CEONeil Mills said, adding that
merchant banker Enam has been
appointed to suggest options and methods of getting capital into the
airline.
Mills, who spoke to ET on the phone
from Goa, did not disclose how much
the airline was looking at raising but
bankers said it could be Rs 400 crore through offering of shares. The carrier
hopes to conclude the process by the
end-December.
There have been concerns that Maran,
whose Sun TV network is under the
scanner for alleged financial irregularities, might look for an exit
from SpiceJet as he might not be able
to sustain losses, which are part of an
airline's cyclical business, for long
under these circumstances.
Industry insiders expect Gurgaon- headquartered SpiceJet to post a loss
of Rs 50-100 crore in the first quarter
of this financial year. The carrier made
a profit of 101 crore in FY10-11 but
posted a loss of Rs 59 crore in its last
quarter, as opposed to a profit of Rs 29 crore in last quarter of the previous
financial year