MUMBAI — IndiGo on Friday announced that its board has approved a capital investment of $820 million (about Rs 7,294 crore) to acquire aviation assets, marking a major shift toward owning aircraft rather than relying predominantly on operating leases.
The investment will be routed through IndiGo’s wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC), the airline said in a stock exchange filing.
“The investment will be made through a combination of equity shares and 0.01 percent Non-Cumulative Optionally Convertible Redeemable Preference Shares (OCRPS), in one or more tranches,” the company said. Funds raised by IndiGo IFSC will be used primarily for the acquisition of aviation assets, enabling IndiGo to take ownership of aircraft.
The capital infusion is planned for FY 2025–26, to be executed in multiple phases. IndiGo will subscribe to equity shares of IndiGo IFSC valued at Rs 10.92 per share, aggregating to $770 million (Rs 68,492 million). It will also subscribe to $50 million (Rs 4,448 million) worth of OCRPS 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,” IndiGo said.
The airline noted that it has traditionally operated a fleet heavily dependent on operating leases. The latest move reflects a strategic shift toward a more balanced ownership structure and diversified financing models, underscoring the company’s focus on prudent capital allocation and long-term value creation.
IndiGo, which operates more than 400 aircraft, runs around 2,300 daily flights across 90-plus domestic and 40-plus international destinations. IndiGo IFSC, incorporated on October 12, 2023, in GIFT City, Ahmedabad, is engaged in aircraft and engine leasing and related financial services. (Source: IANS)
