India’s largest airline IndiGo parent Interglobe Aviation Ltd on Monday said it will raise up to ₹4,000 crore ($533.70 million) through the sale of shares to institutional investors, as it looks to manage cash during the COVID-19 pandemic which has hit its operations.
The virus outbreak caused Interglobe to report its biggest ever loss last month. The company had also announced separate plans to raise at least $268 million through the sale and leaseback of planes and other assets.
India’s largest airline reported a net loss of ₹2,844.3 crore for the three months ended June as disruptions due to the coronavirus pandemic significantly impacted the airline. The aviation firm had a net profit of ₹1,203.1 crore in the year-ago period.
In the first quarter of the current financial year, the airline’s total income declined 88% to ₹1,143.8 crore. In the year-ago period, the same stood at ₹9,786.9 crore, according to a regulatory filing.
Revenue from operations declined 91.9% to ₹766.7 crore in the quarter under review, compared to the same period a year ago.
“Closure of scheduled operations till May 24, 2020, and lower capacity deployment thereafter on account of COVID-19, significantly impacted the quarterly results,” the filing said.
In the wake of the pandemic, air services were suspended in late March. Domestic flights resumed on May 25, while international flights services remain suspended.
