InterGlobe Aviation, the operator of India’s largest domestic carrier IndiGo, said on August 10 that it will raise up to Rs 4,000 crore ($533.70 million) through qualified institutional placement.
“The Board of Directors of lnterGlobe Aviation, at its meeting held today has considered and approved the raising of funds for an aggregate amount not exceeding INR 4,000 crores through an issue of equity shares by way of a qualified institutions placement,” it said in an exchange filing.
The move comes as the company looks to manage cash during the COVID-19 pandemic which has hit its operations.
InterGlobe Aviation on July 29 reported a net loss of Rs 2,844.3 crore for the quarter ended June 2020 as coronavirus-led lockdown impacted operations.
“The aviation industry is going through a crisis of survival and therefore, our cash balance remains our number one priority. However, we also recognize that major disruptions offer companies opportunities for improvement in product, customer preference, costs and employee engagement,” said Ronojoy Dutta, CEO, InterGlobe Aviation. The travel restrictions imposed in India and other countries amid the coronavirus pandemic have dealt the aviation sector a huge, unexpected blow. All airlines in India have undertaken cost-cutting measures such as pay cuts, leave without pay and firings of employees in order to conserve cash.