Airline stock under Rs 40: Company Secures USD 89.5 Million in Liquidity Boost through Carlyle Settlement – Agreement Unlocks USD 79.6M in Cash Maintenance Reserves & USD 9.9M in Credits

SpiceJet Limited has secured a liquidity boost of USD 89.5 million through a settlement with Carlyle Aviation Partners, strengthening the airline’s balance sheet and supporting its ongoing restructuring efforts. 

The USD 89.5 million liquidity enhancement comprises two key components. Of this, USD 79.6 million is allocated to cash maintenance reserves, which will be available for future aircraft and engine maintenance, while USD 9.9 million is designated as cash maintenance credits to offset the airline’s lease obligations.

SpiceJet Chairman and Managing Director, Ajay Singh, said, "This agreement marks a significant milestone in our ongoing restructuring and un-grounding efforts. The support extended by Carlyle demonstrates their confidence in SpiceJet’s long-term prospects. This transaction meaningfully reduces our liabilities, strengthens our balance sheet, and positions us well for sustainable growth."

The liquidity boost is part of a broader settlement agreement with Carlyle Aviation Partners and its affiliated entities. Under this agreement, lessors will restructure lease obligations totaling USD 121.18 million. The restructuring will include the issuance of equity shares aggregating to USD 50 million. Additionally, if lessors realize proceeds above USD 50 million from the sale of the issued shares, a portion of the excess will be applied to offset future lease obligations. The promoter or its designated assignee will also have the option to purchase these equity shares on mutually agreed terms after statutory and contractual lock-in periods.

Strategically, this settlement reflects SpiceJet’s focus on cost efficiency, long-term partnerships, and continued restructuring. The airline intends to leverage this liquidity enhancement to support its next phase of growth, maintain operational efficiency, and strengthen its position among Mid-Cap and Large-Cap Indian airlines.

About the Company

SpiceJet is India’s favourite airline that has made flying affordable for more Indians than ever before. SpiceJet is an IATA‐IOSA certified airline that operates a fleet of Boeing 737s & Q‐400s and is one of the country’s largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airlineʹs fleet offers SpiceMax, the most spacious economy‐class seating in India.

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In June 2025, FIIs sold 8,48,326 shares of this airline stock under Rs 40 and decreased their stake to 11.79 per cent compared to March 2025. Additionally, Authum Investment & Infrastructure Limited holds a 2.66 per cent stake and Plutus Wealth Management LLP holds a 1.06 per cent stake in the company as of June 2025. In its annual results, the company reported net sales of Rs 5,284 crore, an operating loss of Rs 466 and a net profit of Rs 58 crore in FY25. The company has a market cap of over Rs 4,700 crore and the stock is up by 7 per cent from its 52-week low of Rs 31.25 per share.

Disclaimer: The article is for informational purposes only and not investment advice.