IndiGo Board Gives Green Signal to Raise Rs 3,000 Cr Via QIP

The Board of the country's leading low-cost carrier and market leader IndiGo on May 10 has given its "go-ahead" for the airlines to raise up to Rs 3,000 crore via a Qualified Institutional Placement of shares. Last week, the airline had informed that it was considering raising funds to strengthen its business operations.

"Further to the filing dated May 7, 2021, and in compliance with Regulation 30 of the SEBI LODR Regulations, we hereby inform you that the Board of Directors of InterGlobe Aviation, at its meeting held on May 10, 2021, has approved the raising of funds for an aggregate amount not exceeding INR 3,000 crore through an issue of equity shares by way of a Qualified Institutions Placement, in accordance with the relevant provisions of applicable laws and subject to the approval of the company's shareholders and receipt of applicable regulatory approvals," the company said in a statement after the board meeting.

This is significant especially after the second wave of Covid-19 pandemic has once again hit the domestic aviation sector badly with top six cities of operations—Delhi, Mumbai, Bengaluru, Kolkata, Pune and Chennai—fall in the states facing a lockdown since April 20 at least. These six centers account for over 50 percent of the overall domestic traffic.