IndiGo to invest USD 820 million in subsidiary for aircraft ownership

IndiGo is investing USD 820 million in its subsidiary, IndiGo IFSC, to acquire aviation assets. This move signals a strategic shift from its reliance on operating leases towards a more balanced aircraft ownership and diversified financing structure.

IndiGo, a major airline, has approved a capital investment of USD 820 million (Rs 72,940 million) in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC).

Investment Details and Purpose

According to a press release by the airline, the Investment will be made through combination of equity shares and 0.01 per cent Non-Cumulative Optionally Convertible Redeemable Preference Shares (OCRPS), in one or more tranches.

The funds raised by IndiGo IFSC shall be primarily deployed towards the acquisition of aviation assets, thereby enabling ownership of aircraft.

Strategic Shift to Aircraft Ownership

IndiGo 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 reflects IndiGo's commitment to prudent capital allocation and sustainable value creation for all stakeholders.

IndiGo's Market Position

IndiGo is India's leading and amongst the fastest growing carriers in the world. With its fleet of 400+ aircraft, the airline operates around 2300+ daily flights, connecting 90+ domestic and 40+ international destinations, inducted 58 aircraft in 2024 and welcomed over 118 million customers in FY25. IndiGo was also named the 'Best Airline in India and South Asia' by Skytrax at the World Airline Awards 2025. (ANI)

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