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InterGlobe Aviation’s shareholders have agreed to the proposal to obtain up to Rs.3000 crore. InterGlobe Aviation is the parent of the country’s one of the largest airline IndiGo. As per reports, the funds would be raised by the Qualified Institutional Placement route.
On Saturday, in a regulatory filing the company informed that its shareholders have cleared the proposal. The remote e-voting on the proposal began on May 27 and concluded on June 25.
Due to the massive outbreak of the COVID 19 pandemic, the airline industry have struggled strong headwinds. On May 10, the company’s board have approved to raise up to Rs.3000 crore through its sale of share to the institutional investors.
IndiGo on June 5, have reported a consolidated net loss of around Rs.1,147.2 crore in the three months that concluded in March. The major reason behind this loss is the sharp decline in revenue resulted from the pandemic. The airline which had a fleet of nearly 285 planes by the end of March 2021 reported a net loss of Rs.870.8 crore in the past year.
The carriers consolidated total income collapsed by 26 per cent to Rs.6,361.8 crore in the fourth quarter of the ongoing fiscal. In the 2020 March quarter it registered a total income of Rs.8634.6 crore.
Jiten Chopra, IndiGo chief financial officer on June 7 informed that the daily cash burn increased to Rs.19 crore in the March quarter from Rs.15 crore in the previous quarter. He explained that considering the current situation, the cash burn is assumed to increase further in the June quarter.
He further stated, “We continue to work with all our stakeholders. For this purpose, we are working on securing credit line from lenders and entering into the sale and lease back for the new aircraft.” He asserted that managing the cash position remains the primary aim. In addition, he notified that these actions is expected to bring in additional liquidity of Rs 45 billion (Rs 4,500 crore) for the next year.
He further elaborated that apart from these they have also secured board approval for raising funds through a qualified institutional placement up to 30 billion rupees (Rs 3000 crore). He also informed that this proposal is under consideration by the shareholders.
According to reports, for the entire year that concluded in March 2021, the company’s net loss broadened to Rs.5806.4 crore from Rs.233.7 crore in 2019-20 fiscal. In the past financial year, the total income dropped by 58 per cent to Rs.15,677.6 in the past financial year. The same stood at Rs.37,291.5 crore in the previous year period.