SpiceJet‘s shares rebounded on Monday after the airline raised ₹3,000 crore by selling shares to qualified institutional buyers and announced raising additional funds.

What Happened: Goldman Sachs and Societe Generale were among the investors that received more than 5% of the securities offered in the issue, the company said in press release.

Additionally, the debt-ridden carrier also said that the board has approved the issuance and allocation of 48.70 crore equity shares to qualified institutional buyers at ₹61.60 per share. This price includes a premium of ₹51.60 and a discount of ₹3.19 to the floor price. The total funds raised from this issue will amount to ₹2,999.99 crore.

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Following this allotment, the company's paid-up equity share capital will rise from ₹794.67 crore to ₹1,281.68 crore, which is equivalent to 128.16 crore equity shares, SpiceJet said in its regulatory filing.

The cash-strapped airline is expected to use the funds to cover ongoing losses and meet working capital requirements due to the current shortage of aircraft. Earlier, global brokerage HSBC cut SpiceJet's target price to ₹26, and issued a "reduce" call for the stock at the back of escalating issues.

Price Action: Shares of SpiceJet were up 6.26% to ₹70.30 on Monday.

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