IndiGo has approved an investment of USD 820 million in its wholly-owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC). This investment will be a combination of equity shares and 0.01% Non-Cumulative Optionally Convertible Redeemable Preference Shares (OCRPS). The funds will be primarily used for the acquisition of aviation assets.
Investment in Subsidiary
IndiGo’s Board of Directors has approved a significant capital infusion into its subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC). The total investment is valued at USD 820 million (~INR 72,940 million).
Details of the Investment
The investment will be structured through a combination of equity and preference shares:
- Equity shares valued at USD 770 million (~INR 68,492 million).
- 0.01% Optionally Convertible Redeemable Preference Shares (OCRPS) amounting to USD 50 million (~INR 4,448 million).
Use of Funds
The capital raised by IndiGo IFSC will be primarily allocated to the acquisition of aviation assets. This strategic move aims to enable ownership of aircraft.
Subsidiary Overview
IndiGo IFSC, incorporated on October 12, 2023, operates as a finance company within the International Financial Services Centre (IFSC) in GIFT City, Ahmedabad. Its primary activities include aircraft and aircraft engine leasing and related financial services.
Financial Performance of IndiGo IFSC
As of March 31, 2025, IndiGo IFSC reported the following key financial metrics:
- Turnover: INR 289.9 crores
- Profit after Tax: INR (11.1) crores
- Net Worth: INR 413 crores
Investment Timeline
The fund infusion is planned to occur throughout FY 2025-26, across multiple tranches.
Source: BSE