NEW DELHI: India’s largest airline – IndiGo – will invest $820 million (Rs 7,294 crore) in its wholly owned subsidiary - InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC) - to acquire aviation assets and enable ownership of aircraft. 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.
IndiGo said that it has historically maintained a fleet structure predominantly reliant on operating leases. In recent years, the organisation has undertaken a strategic development towards a more balanced ownership structure and diversified forms of financing. This move, according to the airline, reflects its commitment to “prudent capital allocation and sustainable value creation for all stakeholders.”
In a regulatory filing, InterGlobe Aviation Ltd, parent company of IndiGo, stated that it will subscribe to equity shares of face value Rs 10 per share of IndiGo IFSC aggregating to $770 million (Rs 6,849crore) valued at Rs 10.92 per share as determined by Independent Category-1 Merchant Banker. The company will also subscribe to 0.01 percent OCRPS amounting to $50 million (Rs 449 crore) at a face value of Rs 100 per share.
The fund infusion is proposed to be made during FY2025-26 in multiple tranches. IndiGo IFSC, incorporated in October 2023, is engaged in aircraft and aircraft engine leasing and providing related financial services.
As of 30th September 2025, IndiGo had a fleet of 417 aircraft including 30 A320 CEOs (4 damp lease), 180 A320 NEOs, 153 A321 NEOs, 47 ATRs, 3 A321 freighters, 2 B777 (damp lease) and 2 B787 (damp lease).
InterGlobe Aviation Ltd recently reported a net loss of Rs 2,582 crore for the quarter ended September 2025, widening from Rs 989 crore loss in the same period last year. Much of the airline’s losses came due to the impact of foreign exchange amid a weakening rupee against the US dollar.
“Including the impact of currency movement pertaining to dollar-based future obligations, the net loss for the quarter aggregated to Rs 2,582 crore,” said the airline. The losses came despite revenue from operations growing 9.3 percent year-on-year to Rs 18,555 crore in the traditionally weak September quarter.