Cash strapped Indian low cost carrier SpiceJet said it is rasising $270 million with a share sale.
The airline is in urgent need of a cash injection with aircraft lessors circling the airline.
About one quarter of its fleet is grounded as it struggles to pay engine and plane lessors.
It will be its third fundraise this year, yet analysts believe even raising this amount won’t change its fortunes.
It is ‘too little to revive the organisation’ said Harsh Vardhan, chairman of Starair Consulting.
The airline said it will issue of shares and warrants to 64 entities, including some Indian and foreign institutional investors.
These include Aries Opportunities Fund and Nexus Global Fund.
Once the no 2 Indian airline, SpiceJet’s market share is now just 5%.
It just posted a quarterly loss with a much-reduced turnover, in part due to its 25 grounded planes.
