IndiGo has approved a Rs 7,294 crore capital infusion into its IFSC subsidiary to fund the purchase and ownership of aviation assets, marking a major shift in its fleet strategy
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Low-cost airline IndiGo on Friday said its board has approved a capital investment of $820 million (about Rs 7,294 crore) to acquire aviation assets, thereby enabling ownership of aircraft.
The investment was approved in IndiGo’s wholly-owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC).
“The Investment will be made through combination of equity shares and 0.01 per cent Non-Cumulative Optionally Convertible Redeemable Preference Shares (OCRPS), in one or more tranches.
The funds raised by IndiGo IFSC shall be primarily deployed towards acquisition of aviation assets, thereby enabling ownership of aircraft,” the airline said in a stock exchange filing.
The fund infusion is proposed to be made during FY 2025-26, in multiple tranches.
The company will subscribe to equity shares of face value Rs 10 per share of IndiGo IFSC aggregating to $770 million (Rs 68,492 million) valued at Rs 10.92 per share as determined by Independent Category-1 Merchant Banker.
The company will also subscribe to 0.01 per cent OCRPS amounting to $50 million (Rs 4,448 million) at a face value of Rs 100 per share.
“Following the proposed investment, IndiGo IFSC will continue to remain a wholly owned subsidiary of the Company,” said IndiGo.
IndiGo said it has historically maintained a fleet structure predominantly reliant on operating leases.
In recent years, the organisation has undertaken a strategic development towards a more balanced ownership structure and diversified forms of financing.
This move reflects IndiGo’s commitment to prudent capital allocation and sustainable value creation for all stakeholders.
With its fleet of over 400 aircraft, the airline operates around 2,300 daily flights, connecting 90+ domestic and 40+ international destinations.
IndiGo IFSC was incorporated on October 12, 2023, under the Companies Act, 2013, as a wholly owned subsidiary of the Company in Gift City Ahmedabad, Gujarat.
IndiGo IFSC is engaged in aircraft and aircraft engine leasing and providing related financial services.
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