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SpiceJet mum on sell-out, says exploring all options for funds

Mumbai: Amid reports of a possible stake sale, low-cost airline SpiceJet said it is exploring all options to mop up funds to overcome the cash crunch.The company did not divulge whether it is considering diluting
PTI November 22, 2014 10:26 IST
PTI

Mumbai: Amid reports of a possible stake sale, low-cost airline SpiceJet said it is exploring all options to mop up funds to overcome the cash crunch.

The company did not divulge whether it is considering diluting promoter's stake.

"While the company is exploring all various options to further capitalise, we are unable to comment on specifics at this stage," SpiceJet said in a statement.

The statement comes following media reports that promoter Kalanithi Maran, who holds 58.4 per cent stake along with the Sun Group, is exploring either a sell-out or partial dilution of his stake.

Meanwhile, the Bombay Stock Exchange has also sought a clarification from the airline on the media reports about sell-out.

The airline reported the fifth straight quarter of losses for September quarter at Rs 310 crore, although it was down from the year-ago period when it had a net loss of Rs 559 crore.

The losses came down as the airline witnessed a 15 per cent growth in total revenue. For the past fiscal, the airline had reported a record loss of a little over Rs 1,000 crore.

SpiceJet Chief Operating Officer Sanjeev Kapoor had earlier this week said the process to further recapitalise the airline was on and the airline was on track to get back in black.

The carrier, which is currently restructuring its fleet, aims to have 35 Boeing planes by the end of the current year from 28 now and a fleet of 45-50 Boeing 737 by the second half of next year. In the past six months, the airline had brought down its fleet strength by 10 planes to 28.

The airline has been facing an exodus of some senior executives and pilots over the past six months.