SpiceJet looks to raise funds from institutional investors through QIP, shares up 5%

SpiceJet shares rise nearly 5% after the airline said it will raise funds through a QIP after a July 23 board meeting.

SpiceJet is planning to raise funds through a qualified institutional placement (QIP) after holding a board meeting on July 23, the airline said in a filing to the exchanges on July 19.

What is a QIP?

SpiceJet looks to raise capital after holding a board meeting on July 23 (Reuters/Representational photo)

A qualified institutional placement (QIP) is a process by which companies can raise capital through select institutional investors by issuing shares, without the need to submit any pre-issue filings to market regulators like the Securities and Exchange Board of India (SEBI).

"We wish to inform you that a meeting of the Board of Directors of SpiceJet Limited (the “Company”) will be held on July 23, 2024 (Tuesday), inter-alia, to consider and approve raising fresh capital through issue of eligible securities to qualified institutional buyers by way of qualified institutional placement under the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018 and any other methods including by way of further issue," the company wrote.

The company's shares as a result, rose to an intraday high of ₹58.27 on the Bombay Stock Exchange (BSE) as of 12:30 pm, which is a 4.9% rise over the opening price of ₹55.54.

The airline's stock had gained 14% over the past few days.