Cash-strapped airline SpiceJet has announced that its board of directors will meet on November 18 to consider a proposal for raising fresh capital. The carrier informed the BSE that this potential funding could be secured through the issuance of equity shares, preference shares, debt securities, or other permissible instruments, including qualified institutions placements.
The company’s decision to seek new funds comes as it faces intensifying operational and financial difficulties. Recently, Dubai Airports stopped check-in services for the airline due to unpaid dues amounting to approximately ₹36 crore. SpiceJet stated it is working to resolve this issue and maintains that it has adequate bank guarantee coverage. Additionally, the airline cancelled flights to Amritsar, Jaipur, Mumbai, and Delhi on Thursday following a payment dispute with the ground-handling company dnata.
Beyond its operational hurdles, the airline is embroiled in a legal battle with Kalanithi Maran and KAL Airways. The Delhi High Court recently dismissed SpiceJet's request for additional time to deposit ₹144.51 crore. The court noted that the airline had failed to honour a previous commitment to deposit an initial ₹50 crore within a 45-day window. Justice Vinod Kumar further rejected the airline's proposal to offer a Gurugram property as security, citing a previous refusal regarding the same asset.
Key facts
- The board meeting is scheduled for November 18 to discuss raising fresh capital.
- Dubai Airports suspended check-in services for the airline over ₹36 crore in outstanding payments.
- The Delhi High Court rejected a request for more time to pay ₹144.51 crore to Kalanithi Maran and KAL Airways.
- SpiceJet shares closed at ₹8.67 on Friday, marking a 4.96% increase from the previous session.
- The airline's market capitalisation was recorded at ₹1,323.13 crore as of November 13.
Why it matters
The upcoming board meeting is critical as the airline currently maintains skeletal operations. According to reports, company sources have indicated there are two investors interested in the airline, though it remains to be seen if these talks lead to a change in ownership or management.
Background
The legal dispute with Kalanithi Maran follows a Supreme Court order from May 19, 2026, which declined to intervene in the Delhi High Court's directive for the airline to deposit the awarded amount.
Source: Times of India, Economic Times
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