Good news for Spicejet, Rs 160 crore received through Emergency Credit Line Guarantee Scheme
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New Delhi (Uttam Hindu News): Apart from Rs 744 crore, SpiceJet has also secured Rs 160 crore through the Emergency Credit Line Guarantee Scheme (ECLGS), which now has an adequate bank balance of Rs 900 crore. An airline source said on Monday. Last week, SpiceJet had allotted shares and warrants totaling Rs 744 crore in the first tranche. This decision was taken by the company’s board of directors on January 25, which is an important step towards strengthening the financial position of SpiceJet.
The source further said that the airline’s CMD Ajay Singh will personally monitor all major expenses. Every rupee will be carefully scrutinized, sources said, with no expenditure allowed without approval. Singh made it clear that underperformers will face significant challenges at SpiceJet. An airline official said that with the fund infusion, the company will focus on fleet upgrades, enhancing on-time performance and putting customers first.
In addition, a series of cost-cutting measures will be implemented to streamline operations and increase efficiency. The company hopes to raise sufficient capital for financing. SpiceJet has to complete another tranche of equity/warrants raising from the remaining subscribers and has requested additional time from the competent authority to complete the process under the existing preferential issue, as approved by the shareholders of the company on January 10, 2024. Was approved.
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