Shareholders of InterGlobe Aviation, parent company of the country’s largest airline, IndiGo, have approved a proposal to increase to Rs 3,000 crore.
The funds would be collected through placement in a qualified establishment.
Remote electronic voting on the proposal began on May 27 and ended on June 25. The company’s shareholders have cleared the proposal, he said in a regulatory filing on Saturday.
Amid the airline industry facing strong headwinds from the coronavirus pandemic, the company’s board of directors on May 10 gave the green light to raise up to 3,000 crore of rupees through the sale of shares to institutional investors.
On June 5, IndiGo reported a consolidated net loss of Rs 1,147.2 crore in the three months ended March, mainly due to a sharp drop in income amid the pandemic.
The airline, which had a fleet of 285 planes at the end of March 2021, suffered a net loss of Rs 870.8 crore over the period last year.
As demand for air travel has been significantly affected by the pandemic, the carrier’s consolidated total revenue fell more than 26% to Rs 6,361.8 crore in the fourth quarter of the current fiscal year. Total income was Rs 8,634.6 crore in the March 2020 quarter.
On June 7, IndiGo CFO Jiten Chopra said daily cash consumption rose to Rs 19 crore in the March quarter from Rs 15 crore in the previous quarter and given the current situation, cash consumption is expected to increase further in the June quarter. .
Stressing that cash management remains the main objective, he said, “we continue to work with all our stakeholders. To this end, we are working on securing lines of credit with lenders and concluding loans. ‘a sale and leaseback for the new aircraft’. .
These two actions will probably result in additional liquidity of Rs 45 billion (Rs 4,500 crore) for the coming year, he noted.
“Apart from this, we have also obtained approval from the board of directors to raise funds through qualified institutional placement up to Rs 30 billion rupees (Rs 3,000 crore) and this proposal is up to study by shareholders, “he said.
For the fiscal year ended March 2021, the company’s net loss widened to Rs 5,806.4 crore from Rs 233.7 crore in fiscal year 2019-2020.
Total income fell 58% to Rs 15,677.6 crore in the last fiscal year. The same amounted to Rs 37,291.5 crore over the period of last year.
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