InterGlobe Aviation Approves USD 820M Investment in Subsidiary
Filing Summary
InterGlobe Aviation Limited has approved an investment of USD 820 million in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited. The investment will be made through equity shares and 0.01% Non-Cumulative Optionally Convertible Redeemable Preference Shares. The funds will be used for acquiring aviation assets, enabling aircraft ownership. The transaction is a related party transaction conducted at arm’s length. The investment is expected to be completed in multiple tranches during FY 2025-26. IndiGo IFSC is engaged in aircraft leasing and financial services.
InterGlobe Aviation Limited has announced an investment of USD 820 million in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC). This decision was made during the Board of Directors meeting held on November 21, 2025. The investment will be executed in one or more tranches, as disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The financial terms of the transaction involve a cash consideration. InterGlobe Aviation will subscribe to equity shares of IndiGo IFSC, amounting to USD 770 million, and 0.01% Non-Cumulative Optionally Convertible Redeemable Preference Shares (OCRPS) amounting to USD 50 million. The equity shares are valued at INR 10.92 per share, as determined by an Independent Category-1 Merchant Banker. The investment is structured to be at arm’s length, as IndiGo IFSC is a related party being a wholly owned subsidiary.
Operationally, the funds raised by IndiGo IFSC will be primarily utilized for the acquisition of aviation assets, facilitating the ownership of aircraft. IndiGo IFSC, incorporated on October 12, 2023, is engaged in aircraft and aircraft engine leasing and providing related financial services. The entity is registered as a Finance Company under the International Financial Services Centres Authority Act, 2019.
The investment is planned to be completed during the financial year 2025-26. It will be executed in multiple tranches, although specific dates for each tranche have not been disclosed. The transaction does not require any government or regulatory approvals.
InterGlobe Aviation, the parent company, will maintain full control over IndiGo IFSC, as it will continue to be a wholly owned subsidiary following the investment. The promoter group of InterGlobe Aviation does not have any direct interest in IndiGo IFSC, except through their holdings in the parent company.
IndiGo IFSC operates within the financial services industry, focusing on aircraft leasing. The entity reported a turnover of INR 289.9 crores for the financial year ending March 31, 2025, with a net worth of INR 413 crores. The strategic move to invest in IndiGo IFSC aligns with InterGlobe Aviation’s broader business objectives to enhance its asset ownership structure.
InterGlobe Aviation Limited, operating under the brand name IndiGo, is a major player in the Indian aviation sector. The company focuses on providing affordable and timely air travel services. With a fleet of over 400 aircraft, IndiGo operates more than 2200 daily flights, connecting numerous domestic and international destinations. The company is committed to expanding its operational capabilities and enhancing its service offerings.