IndiGo plans ₹7,270 crore investment in subsidiary to purchase aviation assets
IndiGo Airlines announced on Friday that it has approved an investment of $820 million (approximately). ₹7,270 crore to its wholly owned subsidiary InterGlobe Aviation Financial Services IFSC Private Limited) for aircraft purchase.
The investment will be made through a combination of equity shares and 0.01% non-cumulative, optionally convertible and redeemable preference shares (OCRPS) to be distributed in one or more tranches, the airline said in a filing to the stock exchange.
“The company will subscribe for shares of par value ₹The filing states that IndiGo IFSC’s 10 per share shares total $770 million; The airline will subscribe to 0.01% OCRPS with a face value of $50 million. ₹100 per share.
The funds raised by the subsidiary will be used primarily for the acquisition of aviation assets.
The airline said it plans to move towards a balanced ownership structure and explore various financing options.
“IndiGo has historically maintained a fleet structure that relies heavily on operating leases. In recent years, the organization has made a strategic evolution towards a more balanced ownership structure and diversified forms of financing,” the airline said.
About IndiGo IFSC
IndiGo IFSC was incorporated as a wholly owned subsidiary of the Company on 12 October 2023 under the Companies Act, 2013 at Gift City, Ahmedabad, Gujarat.
The company has recorded turnover so far ₹289.9 crore, net profit in financial year 2025-26 ₹11.1 crore and net worth ₹413 crore as on March 31, 2025.
Recently, IndiGo’s parent company InterGlobe Aviation announced its September quarter results and reported a net loss. ₹2,582 crore compared to loss in Q2 ₹987 crore in the same quarter last year.
The airline’s performance was affected by high foreign exchange expenses despite a 9.3% annual increase in revenue. ₹18,555 crore, thanks to effective operational execution and optimized capacity management, Mint reported on November 4.
Speaking about the quarterly performance, IndiGo CEO Pieter Elbers said: “The year started with significant external challenges across the industry, but we saw stabilization in July and a strong recovery throughout August and September. Looking ahead, we have scaled up our operational plans for the second half to meet demand and sustain growth. However, we have nudged our capacity guidance towards early teenage growth for the full fiscal year 2026.”
