IndiGo to invest $45 million in IFSC arm

InterGlobe Aviation Ltd, which operates the IndiGo airline, has approved an investment of about $45 million in its international financial services centre (IFSC) arm InterGlobe Aviation Financial Services IFSC Pvt. Ltd, the company said.

The airline’s board approved an investment of Rs394 crore ($45 million) in one or more tranches in the equity shares of the wholly owned subsidiary, the company said in a statement to the exchanges.

The acquisition will be completed within three months from the date of approval by the company’s board, the statement said.

IndiGo IFSC was incorporated under the Companies Act 2013 on 12 October 2023, as a wholly owned subsidiary, the company said, adding that the subsidiary had not begun its operations till 31 March 2024 and has not generated any turnover for FY24.

The proposed investment in Indigo IFSC is based on a fair and unbiased assessment of the company’s equity share value by “an independent category-1 merchant banker,” ensuring that the investment terms are impartial and treat all parties as independent, with no preferential treatment, the airline firm said.

IndiGo IFSC will deploy the investment to fund aviation assets, repay outstanding loan and for other general corporate purposes, it added.

IndiGo IFSC engages in aircraft and aircraft engine leasing and providing financial services for such transactions.