IndiGo, India’s largest private airline said on Monday that it will raise up to ₹ 4,000 crores through the sale of shares to institutional investors, as it looks to manage cash during the COVID-19 pandemic which has hit its operations. The outbreak of the pandemic has caused Interglobe Aviation, IndiGo’s parent company to report its biggest-ever quarterly loss, last month. The company informed the exchanges about the sale of shares in a regulatory filing, after market hours on Monday.
Last month IndiGo had also said that it was planning to raise at least ₹ 2,000 crores through the sale and leaseback of planes and other assets.
Airlines globally are looking for ways to boost their finances after the coronavirus crisis kept travellers at home. The airline industry body IATA forecasts passenger traffic will not return to pre-crisis levels until 2024.
Indigo temporarily halted operations in March when India began a two-month lockdown, at a time when the carrier was already grappling with higher maintenance costs and weak demand. It has been slowly rebuilding its schedule.
IndiGo had reported a net loss of ₹ 2,849 crores in April to June compared with a ₹ 1,200 crore profit a year earlier.
On Monday, the shares of InterGlobe Aviation rose 1.43 per cent to close at ₹ 952.90 apiece.