New Delhi, Sep 21 (IANS): Struggling low-cost carrier SpiceJet on Saturday said its board has approved the issuance and allotment of 48.70 crore equity shares to qualified institutional buyers at Rs 61.60 per share.

The total amount raised from the issue will be Rs 2,999.99 crore. The low-cost airline is seeking to raise funds to address operational challenges, including a reduced fleet and various legal and financial hurdles.

In a regulatory filing, the airline said the fund-raising committee has “approved the issue and allotment of 48,70,12,986 Equity Shares to eligible qualified institutional buyers at the issue price of Rs 61.60 per Equity Share at a premium of Rs 51.60 (which includes a discount of Rs 3.19 per Equity Share (4.92 per cent of the floor price… aggregating to Rs 2,999,99,99,937.60.”

With this allotment, the airline’s paid-up equity share capital will increase from Rs 794.67 crore, representing 79.46 crore equity shares, to Rs 1,281.68 crore, representing 128.16 crore equity shares.

“Pursuant to the allotment of Equity Shares in the Issue, the paid-up Equity Share capital of the Company stands increased from Rs 7,94,67,27,170 consisting of 79,46,72,717 Equity Shares to Rs 12,81,68,57,030 consisting of 1,28,16,85,703 Equity Shares,” said the low-cost carrier.

The announcement follows shareholder approval last week for a capital raise of up to Rs 3,000 crore.

SpiceJet’s statutory dues were Rs 601.5 crore as of September 15. The airline’s shares dropped 3.25 per cent to closing at Rs 66.16 on Friday.

SpiceJet hit a new low with its market share shrinking by 80 bps to 2.3 per cent (month-on-month) in August, largely due to financial woes and increased grounding, according to the report by Emkay Global Financial Services.