InterGlobe Enterprises, IndiGo's parent, confirms interest in Virgin Australia

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26 Aug, 2025 12:21

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In a dramatic change in stance, InterGlobe Enterprises, the largest shareholder of IndiGo, has confirmed its interest in Virgin Australia.

In a statement on May 15, InterGlobe said it had signed an agreement to participate in the sale process of Virgin Australia.

"As regards Virgin Australia, InterGlobe Enterprises has signed an agreement to participate in the sale process and is bound by the confidentiality requirements of that agreement," the company said.

It declined to share further details.

The announcement comes less than a week after IndiGo clarified to the exchanges that it 'does not have any interest.'

"We deny the contents of these reports and would like to clarify that the Company has not formulated any indicative proposal, nor does it have any interest in this matter," InterGlobe Aviation, which operates IndiGo, had said.

Virgin Australia, co-founded by British businessman Richard Branson, had filed for bankruptcy in April, after its request to the Australian government for a financial aid, was turned down. The disruption caused by COVID-19 had accentuated its already frail financial condition, including a debt of $4.2 billion.

Later on May 16, IndiGo, responding to Moneycontrol story, clarified to the exchanges that "InterGlobe Enterprises Private Limited is a separate legal entity and is a shareholder in the company."

The airline added it is "not party to or involved in any proposal of InterGlobe Enterprises Private Limited in relation to the sale of Virgin Australia."

The suitor

Now after confirming its interest, InterGlobe will have to ready its arsenal as it competes with up to another 20 suitors who have lined up for Virgin Australia.

Bloomberg reported that Deloitte, the airline’s administrator, expects eight indicative offers. Out of these, three will be shortlisted and will to submit a binding offer.

Interestingly, InterGlobe seems to be up against alternative asset management companies, private investment firms and private equity players. No other airline, at least till now, has confirmed its interest.

The suitors include Brookfield Asset Management Inc, Bain Capital and BGH Capital.

Shortlisted bidders are expected to put in bids by June 12.

The story has been updated to include IndiGo's clarification