InterGlobe Aviation, parent of the country's largest airline IndiGo, on Monday said its board has approved raising up to Rs 3,000 crore through sale of shares to institutional investors.
The fund raising plan of the company comes at a time when the airline industry is facing significant headwinds due to the coronavirus pandemic that has resulted in falling passenger demand and low occupancy in flights.
In a regulatory filing, InterGlobe Aviation said its board, during the meeting on Monday, approved "raising of funds for an aggregate amount not exceeding up to Rs 3,000 crore".
This will be done through issuance of equity shares by way of Qualified Institutions Placement (QIP).
The Gurugram-based airline had reported a net loss of Rs 620.1 crore, its fourth consecutive quarterly loss, in the three months ended December 2020. The company is yet to announce its earnings for the 2021 March quarter as well as for the fiscal year ended March 2021.
While the airline industry was slowly on the recovery path, the second wave of the coronavirus pandemic has hit the sector hard.
On Monday, shares of the company rose 2.34 per cent to close at Rs 1,677.95 on BSE.