Post on Medial

You won’t find all of this info in one place anywhere else 🙏🙏 This is about SpiceJet Limited- All in one single deep dive. So, tighten your seatbelts, as we take off on this crazy flight! .. In the last ~5yrs, SpiceJet has earned big in 5 ways 📛📛 1> Rs 220cr of TDS deducted from employee salaries but not paid to the Govt 2> Rs 71cr of GST which it collected from customers, but did not pay to the Govt 3> Rs 136cr of PF money which is reflected in employee payslips, but never paid to the Govt 4> Rs 119cr of additional money which employees are yet to be paid for services of past months 5> Rs 290cr of which airports are demanding from it, but the company has not paid .. Meanwhile, the airline claimed profitability in the last two quarters. But, did that profitability claim mean anything at all, if it was logged by not paying employees their salaries for the latest months too? This is clear from the fact that the airline has itself admitted that it owes them Rs 119cr in addition to the aforementioned TDS and PF dues. This is simply aghast! 📛📛 .. And what makes it worse? -> 2/3rd of the airline’s planes are grounded due to a shortage of parts and engines -> 70% SpiceJet flights were delayed in July. This was 56% in June and 40% in May -> The company has a negative net worth, with debt which is more than its market capitalisation -> When it pays the TDS and GST dues, if at all, it will be way bigger numbers than the ones quoted here because of the penalty and interest amounts added on the top .. And then there is an existing case with former promoters (Marans) 📛📛 Again and again, the arbitration, and now the Delhi High Court has ordered it to pay more and more dues to Marans. And yet, a massive sum remains unpaid. .. That’s quite a messy business. But, this is where it gets even worse! -> Much of the debt on its books is from public sector banks - Thus if the airline fails like Go First, the biggest chunk of the loss will ultimately be socialised -> And the promoter has meanwhile been pretty consistent in selling his own stake. Shareholding is already down from ~60% a few quarters ago to <48% now -> And of that remaining shareholding too, ~75% is already pledged .. Means what? The mess is so so ugly, that in the worst case, the promoter won’t even be in a position to sell his. stake and pay the dues. That’s how bad the scene is. And this is when I am very gracious with what details I am writing here 📛📛 .. Thus, my humble request to all: The airline is raising Rs 3k crore via a QIP, as a result of which it has issued a big and detailed public document on its state of affairs. Please read it in detail to understand how bad the situation is!