Tata Sons Ltd, the holding company of Tata group, and Singapore Airlines Ltd - the two promoters of Vistara - have infused an additional Rs 750 crore into the airline, data accessed by the business intelligence platform Tofler showed.
In the latest round of fund infusion, Tata Sons Pvt Ltd will infuse Rs 382.5 crore in Vistara while Singapore Airlines Ltd will infuse Rs 367.5 crore, data from Tofler, which was reviewed by Moneycontrol, showed.
The new fund infusion comes just three months after the airline's promoters had infused Rs 465 crore in Vistara back in May.
The airline’s board has also approved the allotment of 75 crore shares of Rs 10 each to the two promoters. A Vistara spokesperson declined to comment on the fundraising but said the airline continued to grow its operations.
The fresh equity infusion comes at a time when the aviation industry is struggling to stay afloat due to travel restrictions across the country coupled with the restrictions on flight capacity and seat pricing set by the government of India.
The aviation industry in India is also facing challenges in the form of higher fuel expenses, rising competition and the fight for market share.
The price of aviation turbine fuel or jet fuel was once again hiked on August 1 by about 1.3 percent as compared to July and by more than 57.37 percent when compared to August 2020.
The airline's promoters had slowed down on fund infusion in 2020 as international operations were shut for a large part of the year due to restrictions imposed by the governments to contain the spread of deadly coronavirus. However, they are now looking at equity injection to expand its international operations.
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