InterGlobe To Launch Leasing Arms Worth Rs 30 Cr At IFSC Gift City

The establishment of financial services arms with an initial investment of Rs 30 crore was approved on September 4 by the board of InterGlobe Aviation Ltd, the company that runs IndiGo, the largest airline in India. According to an exchange filing with the stock exchanges, the airline's board has authorised the investment that would be made in the Special Economic Zone at Gujarat International Finance Tec-City. In addition, the board of the airline has authorised the issuance of corporate guarantees in the amount of up to $996 million to secure the financial commitments of the aforementioned wholly-owned subsidiary.

"We wish to inform that the Board of Directors of the Company, at its meeting held today, September 4, 2023 (staring time: 10.30 a.m., closing time: 12.30 p.m.), has approved: a) Incorporation of a wholly owned subsidiary of the Company b) Investment up to INR 30 crores in one or more tranches c) Issuing corporate guarantees of up to USD 996 million (or an equivalent amount in Indian Rupees or any other currency) to secure the payment obligations of aforesaid wholly owned subsidiary," said the company in a regulatory filing.

The news from IndiGo comes shortly after Air India became the first significant airline to establish a leasing facility in Gujarat's IFSC Gift City.

The company has also said in a stock exchange filing that "we wish to inform that the Board of Directors of the Company, at its meeting held today, September 4, 2023 (staring time: 10.30 a.m., closing time: 12.30 p.m.), has approved placing the order for 10 additional A320 NEO aircraft." These 10 aircraft are to be part of the original 300 aircraft order of 2019.

On Tuesday, the shares of Interglobe Aviation opened higher on the BSE at Rs 2475.05 apiece compared to the previous close of Rs 2451.95.