The government of India stopped commercial international flights in March 2020 and the ban has been extended to June 30. Domestically too, airlines are flying with restrictions. This has impacted the bottom lines of aviation firms.
Airline firms are looking at investment options to boost their sagging balance sheets. InterGlobe Aviation Limited, which is the holding company of private carrier IndiGo, has shortlisted four investment banks--Citi, JP Morgan, BNP Paribas & Morgan Stanley-- to help raise funds of up to Rs 3,000 crore, Moneycontrol said citing people familiar with the matter. The IndiGo qualified institutional placement may be launched in August, the report said.
SpiceJet is also planning to raise funds through issuance of equity shares or debt instruments. The proposal comes at a time when the airline industry is grappling with strong headwinds due to the coronavirus pandemic that has also resulted in less occupancy in many flights. On July 1, the company reported narrowing of net loss to Rs 235.3 crore for the quarter ended March 2021, and announced that it will raise up to Rs 2,500 crore to ensure long-term growth and sustainable operations.
Go Airlines (India) Ltd, which has announced rebranding itself as 'Go First', filed preliminary papers for an initial share sale worth Rs 3,600 crore in May. The proceeds will be mainly used to repay dues. Markets regulator Sebi has temporarily suspended the initial public offering (IPO) of GoAir due to a pending enquiry against Bombay Dyeing Manufacturing Company Ltd and its promoters, the Wadias.