IndiGo shares fall nearly 2% in morning trade as company eyes ₹4,000 crore through stake sale

IndiGo
  • IndiGo's share price plummets nearly 2% in morning trade after the company said it will raise up to ₹4,000 crore through the sale of shares to institutional investors.
  • The company in the recent quarter ended June clocked a biggest-ever net loss of ₹2842.57 crore.
  • The company had earlier on July 29 announced plans to raise at least $268 million through the sale and leaseback of planes and other assets.
India’s largest domestic flight operator IndiGo's share price plummets nearly 2% in morning trade after the company said it will raise up to ₹4,000 crore through the sale of shares to institutional investors, as it looks to manage cash during the coronavirus pandemic.

Earlier on July 29, the company had announced plans to raise at least $268 million through the sale and leaseback of planes and other assets.

During this coronavirus pandemic, the aviation sector has been one of the worst-hit. Indigo has borne the brunt of travel restrictions and reported losses for the past two quarters. The company in the recent quarter ended June clocked a biggest-ever net loss of ₹2842.57 crore.

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The company’s total revenue in the last quarter was down 92% YoY to ₹7,66.73 crore compared to ₹9,420 in the same period the previous year.

In the wake of coronavirus, air passenger services in India were suspended in mid-March, and international flights continue to remain suspended. Domestic flights however resumed services on May 25. The passenger traffic has been significantly lower, and the airlines are only allowed to operate at 45% of their capacity.

Indigo’s CEO Ronjoy Dutta himself said that they are “flying only a small percentage of its full fleet of 250 aeroplanes.”

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The company has also introduced various cost-cutting measures such as multiple pay cuts, extended leave without pay and laying off nearly 10% of its total workforce.

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