SpiceJet's board has approved issuing 48.7 crore equity shares to institutional investors, raising nearly ₹3,000 crore. The funds will aid in settling statutory dues and creditor liabilities amidst the airline’s financial struggles.

SpiceJet is grappling with multiple woes, including financial challenges, legal battles and grounding of aircraft

The proceeds will also be used for settling liabilities of creditors, including aircraft and engine lessors, engineering vendors and financiers

SpiceJet has received shareholder approval to raise up to Rs 3,000 crore through a special resolution. The airline intends to use the funds to improve its financial situation and return to full operational capacity.

SpiceJet Ltd.’s $358 million share sale attracted bids from several large investors including Tata Mutual Fund, people familiar with the matter said, providing a lifeline to the Indian airline that has furloughed staff and delayed tax payments.