Shareholders of InterGlobe Aviation, which operates India's largest airline IndiGo, approved a plan to raise INR30bn ($40.4m), according to a stock exchange filing on Saturday.
The funds would be raised through a new issue of shares to qualified institutional investors. The remote e-voting on the proposal commenced on May 27 and ended on June 25.
The company intends to replace older aircraft with 15% more fuel-efficient ones, according to a recent brokerage report from Geojit BNP Paribas. The new capital could be used for buying aircraft, sale-and-lease-back operations and cost rationalisation. IndiGo has 580 planes on order with Airbus of which it receives around 50 every year.
Back to business
The company's airline business will get back to normal by December this year as things stabilise from the pandemic-induced drop in volumes, said CEO Ronojoy Dutta earlier this year, as reported by Reuters. The year 2022 will be a great year for the company in terms of growth and profitability, he added.
Indigo airlines is now the world’s seventh biggest by capacity and the largest outside the United States and China, according to the media report which quoted UK-based data firm OAG.
InterGlobe Aviation share prices were trading 0.10% higher at INR1730 on Monday.
The company reported a consolidated net loss of INR11.47bn for the three months ended March 2021 earlier this month, due to a decline in revenues amid the pandemic.
The company has a fleet of 287 aircraft as of 31 March 2021.