SPICEJET RAISES Rs 3,000 Crores THROUGH QIP
(QUALIFIED INSTITUTIONAL PLACEMENT) AND PAID ITS
GST DUES , EMPLOYEE’S SALARY ARREARS AND
CLEARANCES OF ALL ITS TDS.
WHAT IS A QUALIFIED INSTITUTIONAL PLACEMENT (QIP)?
1. A
qualified institutional placement (QIP) is a way for listed companies to raise
capital without having to submit legal paperwork to market regulators.
2. Qualified
institutional buyers (QIBs) are the only entities allowed to purchase QIPs
ADVANTAGES OF QIP
3. The
use of QIPs saves time because the issuance of QIPs and the access to capital
are far quicker than through a follow-on public offer (FPO).
4. QIPs
have far fewer legal rules and regulations to follow, making them not only
faster but also more cost-efficient.
5. Additionally,
there are fewer legal fees and no cost of listing overseas.
HOW SPICEJET USES QIP TO COME OUT OF ITS
FINANCIAL TROUBLE
6. Low-cost
airline SpiceJet recently raised Rs 3,000 crores through a Qualified Institutional
Placement (QIP), attracting various institutional investors, including
Goldman Sachs and Tata Mutual Fund.
7. SpiceJet
informed that it cleared all its Goods and Services Tax (GST) dues and all its employee salary outstanding and TDS Rs 220 Crores on its employee’s salary
outstandings.
8. This
will help the SpiceJet to manage its financial discipline and to comply with
the regulatory compliance.
9. SpiceJet
announced that it had resolved its dispute with Engine Lease Finance
Corporation through an amicable settlement. ELFC had previously claimed $16.7
million, and settlement has been reached
by SpiceJet now.
OTHER
COMPANIES WHICH USED QIP FUNDING
10.
Bajaj Finance Ltd led the biggest QIP, raising
around Rs 8,800 crore. Union Bank of India and Bank of India followed, taking
home approximately Rs 5,000 crore and Rs 4,500 crore.
11.
Among companies, Suzlon Energy had the QIP,
securing around Rs 2000 crore. Sheela Foam (Rs 1200 crore), Apar Industries
Ltd, Blue Star Ltd, and Ramkrishna Forgings Ltd (Rs 1000 crore each) were also
noteworthy.
If your company needs QIP funding, please
contact
R V Seckar
Practicing Company Secretary ,
7904719295,
rvsekar2007@gmail.com
