SpiceJet's Rescue: Mumbai's Harihara, Preeti Mahapatra to Infuse Over Rs 1,100 Crore, Report Indicates

Mumbai-based business couple Harihara and Preeti Mahapatra are set to infuse over Rs 1,100 crore into SpiceJet, marking a significant investment. This move follows SpiceJet's plan to rope in wealthy investors, aiming to alleviate the airline's financial woes. The injection is expected to secure a 19% stake in the company, reducing the existing stake of promoter Ajay Singh. Additionally, SpiceJet's shares surged by nearly 8% in response to its interest in acquiring Go First, a bankrupt carrier, with plans to submit an offer after conducting thorough due diligence. Despite a narrowed consolidated loss of Rs 446.09 crore in the September quarter, the airline witnessed reduced expenses and income compared to the same period last year.

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In a significant financial turn, SpiceJet is poised for a major rejuvenation with a substantial investment from Mumbai-based business couple Harihara and Preeti Mahapatra. They've committed to infusing over Rs 1,100 crore into the airline, strategically aiding its recovery from a tumultuous period. This substantial investment is set to secure a considerable 19% stake within the company, a pivotal boost considering the airline's recent financial struggles.

This development aligns with SpiceJet's larger strategy, following its announcement last week about drawing in affluent investors. The airline had aimed to amass over Rs 2,000 crore through the issuance of 320.8 million new equity shares and 130 million convertible warrants. These efforts are anticipated to alleviate the financial strain, albeit at a cost to existing stakeholders. Promoter Ajay Singh's current stake, standing at 56.49%, is anticipated to diminish significantly to approximately 38.55%, as per reports from the Economic Times.

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Moreover, SpiceJet's market performance showcased a notable surge, with its shares spiking by almost 8% in intra-day trade. This surge followed the airline's expressed interest in acquiring Go First, a bankrupt carrier. SpiceJet's intentions to undertake a thorough due diligence process prior to submitting an offer generated positive investor sentiment, propelling its stock by 7.77% to reach Rs 69.20, marking its 52-week high on the BSE.

However, despite this positive trajectory, SpiceJet reported a narrowed consolidated loss of Rs 446.09 crore in the September quarter, attributed mainly to a reduction in overall expenses. The airline's financial statement, encompassing the performance of nine subsidiaries, recorded a reduced total comprehensive loss compared to the previous year's corresponding period. Total income also witnessed a decline from Rs 2,101.79 crore to Rs 1,725.81 crore, while expenses dropped to Rs 2,175.24 crore from Rs 2,935.02 crore during the same period.

This rollercoaster of financial developments underscores SpiceJet's concerted efforts toward a revival amidst a challenging operational landscape.