IndiGo allocates Rs 7,300 crore towards purchase of aviation assets

IndiGo allocates Rs 7,300 crore towards purchase of aviation assets

IndiGo, India's largest domestic airline, on November 21 said has approved a capital investment of $820 million (Rs 7,300 crore) in its wholly-owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited.

The investment will be made through combination of equity shares and 0.01% 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.

"IndiGo 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," the airline said in a statement.

InterGlobe Aviation will make the investment through subscription to InterGlobe Aviation Financial Services' equity shares with a face value of Rs 10 per share, aggregating to Rs 6,849 crore. The value of each share is fixed at Rs 10.92 per share, as determined by an independent merchant banker, InterGlobe Aviation said. The company will also invest up to Rs 448 crore by subscribing to the optionally convertible redeemable preferential shares.

The fund infusion is proposed to be made during FY26 in multiple tranches.

IndiGo IFSC was incorporated on October 12, 2023, under the Companies Act, 2013, as a wholly-owned subsidiary of the Company. The entity is registered as a Finance Company under the International Financial Services Centres Authority Act, 2019.

IndiGo IFSC is engaged in aircraft and aircraft engine leasing and providing related financial services.

As on March 31, 2025, the turnover of the company was Rs 290 crore, net worth was Rs 413 crore and it posted net loss of Rs 11 crore.

On November 21 at 11:35 am, IndiGo shares were trading 0.5% higher at Rs 5,811 apiece.