SpiceJet Promoter Ajay Singh to invest ₹500 Crore, boosting airline's finances

SpiceJet promoter Ajay Singh will invest ₹500 crore into the airline to boost its financial position, enabling it to access additional credit facilities.

SpiceJet promoter Ajay Singh will infuse ₹500 crore into the airline, a move that will help boost its financial position amid multiple headwinds.

A SpiceJet passenger Boeing 737-800 aircraft takes off from Sardar Vallabhbhai Patel international airport in Ahmedabad. (REUTERS)

The fresh equity infusion will help the carrier in accessing additional credit facilities of ₹206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS), it said in a statement on Wednesday.

The board of SpiceJet on Wednesday considered options for raising fresh capital.

"Ajay Singh, promoter of the company, in order to strengthen the financial position of the company, offered to infuse ₹500 crore," the statement said.

Singh, who is the Chairman and Managing Director of SpiceJet, said he is pleased to infuse ₹500 crore into the company.

"SpiceJet has a bright future and I am committed to helping it achieve its full potential. This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market, grow its revenue and profits," he said.