SpiceJet, one of the most popular domestic Indian carriers, said it will aim to raise $271m through a share sale. The company’s shareholders approved the plan at its AGM. 

More than 300 million shares will be offered at equity of Rs10 ($0.12) and at an issue price of Rs50 ($0.60). 

The airline said it needed to raise the funds to settle outstanding debts, along with tax, fuel and payroll bills. 

It’s understood that a portion of the funds will help the airline reactivate 25 aircraft which have been parked since the Covid-19 pandemic, and extend its fleet with new purchases. 

As a result of the sale, the controlling stake of Ajay Singh and associates will drop from 56.5% to 38.55%. 

Mumbai businessman Harihara Mahapatra, and wife Preeti, are expected to take around a 20% stake in SpiceJet via the share sale, reportedly costing the pair $132.6m. 

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The remaining combined stake of existing shareholders will fall from 43.5% to 35.52% after the sales are completed. 

“We are confident that this capital raise will help us achieve our goal of building a world class airline in India,” said Singh as he announced the plan for “SpiceJet 3.0” to shareholders.