IndiGo has committed to invest up to $820 million in InterGlobe Aviation Financial Services IFSC Private Limited, its wholly owned subsidiary. The investment will be a mix of equity and 0.01% OCRPS and will be deployed in one or more tranches. The funds will be used by the subsidiary for acquisition of aviation assets, thus helping the company to own aircraft.
Capital Infusion for Growth
IndiGo’s board has approved an investment of up to $820 million (approximately ₹72,940 million) into its financial services subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited. This decision, made on November 21, 2025, underlines IndiGo’s strategic move towards strengthening its asset ownership capabilities.
Investment Breakdown
The funding will be structured through a combination of instruments:
- Subscription to equity shares: Totalling up to $770 million (approximately ₹68,492 million), with shares priced at ₹10.92 each, as determined by an independent merchant banker.
- Subscription to 0.01% Optionally Convertible Redeemable Preference Shares (OCRPS): Amounting to $50 million (approximately ₹4,448 million), with a face value of ₹100 per share.
Strategic Rationale
The primary objective of this investment is to channel funds towards the acquisition of aviation assets. Historically reliant on operating leases, IndiGo is strategically shifting towards a more balanced ownership model. This move is intended to provide more prudent allocation of capital and sustainable long-term value for its stakeholders.
Subsidiary Overview
InterGlobe Aviation Financial Services IFSC Private Limited, incorporated on October 12, 2023, functions as IndiGo’s wholly owned subsidiary. It is registered as a finance company and provides aircraft and aircraft engine leasing, along with other related financial services.
Financial Snapshot
As of March 31, 2025, IndiGo IFSC reported the following:
- Turnover: ₹289.9 crores
- Net Worth: ₹413 crores
- Loss After Tax: ₹(11.1) crores
Source: BSE