IndiGo board approves $820m investment in aviation assets

InterGlobe Aviation Limited’s board of directors approved an investment of $820 million into InterGlobe Aviation Financial Services IFSC Private Limited (“IndiGo IFSC”), a wholly-owned subsidiary. This investment, to be made in multiple tranches during FY 2025-26, aims to primarily facilitate the acquisition of aviation assets, thereby enabling direct ownership of aircraft.

The capital infusion will be executed through a combination of equity shares and 0.01% Non-Cumulative Optionally Convertible Redeemable Preference Shares (OCRPS). Specifically, $770 million will be for equity shares at a face value of INR 10 per share, and $50 million for OCRPS at a face value of INR 100 per share. This strategic move aligns with IndiGo's objective of transitioning towards a more balanced fleet structure, reducing its historical reliance on operating leases and diversifying financing forms.

IndiGo IFSC, incorporated on October 12, 2023, and registered as a finance company in Gift City Ahmedabad, is engaged in aircraft and engine leasing and related financial services. As a related party, the investment is conducted at "arm's length," with promoters holding no interest beyond their stake in the parent company. IndiGo IFSC reported a turnover of INR 289.9 crores and a net worth of INR 413 crores as of March 31, 2025.