InterGlobe Aviation Limited, the parent company of IndiGo, has announced an investment of up to ₹3,940 million (~$45 million) in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC).
The decision was approved by the Board of Directors in a meeting held on March 12, 2025.
IndiGo IFSC was incorporated on October 12, 2023, under the Companies Act, 2013, as a wholly-owned subsidiary of IndiGo. It functions as an International Financial Services Centre (IFSC) unit, aligned with the International Financial Services Centres Authority (IFSCA) Act, 2019.
The company is engaged in aircraft and aircraft engine leasing, along with providing financial services for such transactions. However, it had not commenced operations by March 31, 2024, and therefore, did not generate any revenue in FY 2023-24.
The ₹3,940 million investment will be made in one or more tranches and will be utilised for financing aviation assets, repaying outstanding loans, and supporting general corporate purposes.
As IndiGo IFSC is a wholly-owned subsidiary, this transaction falls under related party transactions. However, the investment has been made at fair valuation based on an independent valuation report from a Category-1 Merchant Banker, ensuring compliance with arm’s-length principles. The investment is expected to be executed within three months from the date of board approval.
This move aligns with IndiGo’s long-term strategy to strengthen its financial arm and optimise aircraft leasing operations.
On March 13, 2025, IndiGo share price opened at ₹4,740.00, down from its previous close of ₹4,729.20. At 9:35 AM, the share price of IndiGo was trading at ₹4,714.05, down by 0.32% on the NSE.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 13, 2025, 11:48 AM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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