IndiGo shares rise over 1% as board approves $820 million investment in subsidiary for aircraft acquisition

This comes after its board of directors approved an investment of $820 million (or ₹7,720 crore) in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Ltd, for aircraft acquisition.

The stock was trading 1.07% higher at ₹5,847 per equity share as of 1:26 pm.

The scrip has slumped nearly 1% over the past five years and more than marginally over the month. It has increased by a little over 7% in the last six months and about 27% year-to-date.

While the share touched a 52-week high of ₹6,232.50 on August 18, 2025, it reached a year’s low of ₹3,945 apiece on January 22, 2025.

The investment will be made through a combination of equity shares and 0.01% non-cumulative optionally convertible redeemable preference shares (OCRPS), in one or more tranches, the airline said in a regulatory filing.

The company will subscribe to equity shares of face value ₹10 per share of IndiGo IFSC, aggregating to $770 million ( or ₹68,492 million) valued at ₹10.92 per share as determined by an independent category-1 merchant banker.

Furthermore, its OCRPS subscription will amount to $50 million (or ₹4,448 million) at a face value of ₹100 each.

The funds raised by the subsidiary firm will be primarily deployed towards the acquisition of aviation assets, thereby enabling ownership of aircraft, the company stated.

Additionally, the fund infusion is proposed to be made in multiple tranches during FY 2025-26.

IndiGo has 411 aircraft in its fleet as of November 21, according to aircraft fleet tracking website planespotter.net, with 365 in operations and the remaining 46 on ground.

Q2 results

InterGlobe Aviation Limited, which runs IndiGo Airlines, reported a net loss of ₹2,581.7 crore for the September FY26 quarter, owing to the forex impact. In the year-ago period, it posted a loss of ₹986.7 crore.

“Including the impact of currency movement pertaining to dollar-based future obligations, the net loss for the quarter aggregated to ₹25,821 million,” the company said in a press release.

Excluding the impact of currency movement, IndiGo reported a net profit of ₹1,039 million (₹103.9 crore), compared to a net loss of ₹7,539 million (₹753.9 crore) in Q2FY25.

Its revenue from operations witnessed a 9.3% growth to ₹18,555.3 crore during the quarter under review, as against ₹16,969.6 crore logged in the corresponding quarter of the previous fiscal year.

InterGlobe Aviation has a total market capitalisation of ₹2.26 lakh crore, as of November 21, 2025, according to data on the NSE.

_With inputs from PTI_u