By Kavita Mistry 
IndiGo, India’s largest airline, has announced a capital investment of USD 820 million (approximately INR 72,940 million) in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC). The investment, to be made through a combination of equity shares and 0.01% Non-Cumulative Optionally Convertible Redeemable Preference Shares (OCRPS), will be executed in one or more tranches.
The funds raised by IndiGo IFSC will primarily be deployed towards the acquisition of aviation assets, enabling IndiGo to take ownership of select aircraft as part of its long-term growth and financing strategy.
Historically, IndiGo has operated a fleet largely built on operating leases. The new capital allocation signals a deliberate shift towards a more balanced model, combining ownership and leasing to enhance financial efficiency and operational flexibility.
The investment reflects IndiGo’s commitment to strengthening its capital base and creating sustainable long-term value for its stakeholders. By diversifying its financing mix, IndiGo aims to optimise costs, hedge against market volatility, and support continued expansion across domestic and international routes.
The airline’s move to build asset ownership through IndiGo IFSC aligns with its broader financial strategy, ensuring agility and resilience in an evolving aviation environment.
