As of June-end it had free cash of around Rs 7,500 crore, a 2.2% decline over last June
InterGlobe Aviation, the owner of the country’s largest domestic airline, IndiGo, will raise around Rs 4,000 crore through a qualified institutional placement (QIP), the airline announced on Monday, after its board approved the plan.
The fundraising comes even as the Covid-19
pandemic and travel restrictions continue to batter the aviation
sector, resulting in limited operations and weak revenue growth outlook.
Founders and co-promoters Rahul Bhatia and Rakesh Gangwal own 74.86 per cent stake in the firm. At Monday’s closing price of Rs 952.90 on the BSE Sensex, the airline’s market capitalisation stood at Rs 36,667 crore.
The airline posted a pre-tax loss of Rs 2,842.6 crore in the first quarter of FY21 against a profit before tax of Rs 1,509.4 crore in the corresponding quarter a year ago. Revenue from operations fell 91 per cent year-on-year (YoY) with flight operations suspended for nearly two months.
While operations resumed from mid-May, industry-wide capacity and seat occupancy are far below last year’s normal. IndiGo, which has a fleet of over 250 aircraft, cut staff strength by 10 per cent last month as it anticipates delayed revival in air traffic.
The airline has a healthy cash balance. As of June, it had free cash of around Rs 7,500 crore, a 2.2 per cent decline over last year.