Dear Shareholders,
I am delighted to share some ground breaking developments at SpiceJet,
which I believe will significantly impact our journey ahead. The Board of Directors of the
Company, recently approved a strategic move to raise fresh capital, totalling over
Rs.2,240 crore (approximately USD 270 million).
This initiative involves the issuance of equity shares to Financial
Institutions, FIIs, HNIs, and private investors, aiming to fortify our airline's
financial strength and accelerate our growth trajectory.
I am proud to share that prominent investors, including Elara India
Opportunities Fund, Aries Opportunities Fund, Mahapatra Group, Nexus Global Fund,
Prabhudas Lilladher, Resonance Opportunities Fund, and others, will be part of this
landmark initiative by subscribing to equity shares and equity warrants.
This is a significant fund raise that will empower SpiceJet to execute
ambitious expansion plans and bolster its operational capabilities. It will strengthen our
financial position, settle outstanding issues, help us enhance our product presence and
expand our market reach. The funds raised will be instrumental in supporting various
operational expansion initiatives, including fleet enhancement, route network expansion,
and technological advancements.
Now, turning to our operational highlights for the financial year
2022-23, we have achieved significant milestones in on-time performance, reported a net
profit in two of the four quarters, and are actively working towards bringing our grounded
planes back into service.
Our commitment to enhancing services and the dedication of our
employees have allowed us to maintain the trust and loyalty of our passengers. We are
proud to report substantial progress in expanding our route network both domestically and
internationally, unlocking new avenues for growth through strategic partnerships.
I firmly believe that SpiceJet has a bright future and I am committed
to helping it achieve its full potential. I am pleased to share that I have already
infused
Rs.200 crore in the Company and will be further infusing about Rs.300
crore into the Company. With this equity contribution, the Company is entitled to
additional credit facilities of Rs.200 crore under the emergency credit line guarantee
scheme.
We remain focused on adapting to the changing landscape of the aviation
industry, identifying and seizing new opportunities. I assure you that every effort will
be made to turn around your Company's fortunes and propel it to greater heights. The
recent fund raise is testimony to our efforts and commitments.
I am also happy to share that Carlyle Aviation Partners have acquired
7.03% equity stake in our Company and this transaction has helped further strengthen our
balance sheet. We also concluded multiple settlements and successfully hived off
SpiceXpress, the logistics platform of the Company.
As we look ahead, we are excited about the opportunities that lie
before us. Our commitment to sustainable practices and technological innovation will drive
our growth trajectory.
As we navigate the challenges and opportunities in the aviation
industry, we remain focused on adapting to the changing landscape, identifying new
opportunities, and turning around the company's fortunes. With a renewed financial
strength and strengthened partnerships, we are optimistic about SpiceJet's bright
future.
I extend my heartfelt gratitude to our dedicated employees, valued
partners, and most importantly, to you, our esteemed shareholders. Your trust and support
inspire us to reach new heights, and we remain resolute in our pursuit of excellence.
In conclusion, financial year 2022-23 was a testament to
SpiceJet's determination, resilience, and ability to rise above challenges. We are
confident that our collective efforts will drive us towards a future marked by success and
growth.
Warm regards,
Ajay Singh
Chairman & Managing Director