InterGlobe Aviation, the parent company of India’s largest airline IndiGo, has announced an investment of up to USD 45 million in its subsidiary, InterGlobe Aviation Financial Services IFSC Pvt Ltd. The board of directors approved the investment during a meeting held on Wednesday.
The investment, which amounts to approximately INR 3,940 million (or USD 45 million), will be made in one or more installments. The funds will be used for financing aviation assets, repaying outstanding loans, and covering other general corporate purposes for the subsidiary.
This move is part of IndiGo’s broader financial strategy and indicates its focus on strengthening its financial services subsidiary, potentially enhancing its overall operational efficiency and market presence.
IndiGo IFSC, the subsidiary of InterGlobe Aviation, was incorporated in October 2023 and is focused on aircraft and aircraft engine leasing. It also provides financial services related to such transactions. The establishment of IndiGo IFSC reflects the airline’s strategy to expand its financial services capabilities, particularly in the aviation sector, by leveraging the opportunities in leasing aircraft and engines, which are integral to its operations. This subsidiary will play a crucial role in facilitating financing options for IndiGo’s aircraft fleet expansion and managing related assets.