Tuesday, August 11, 2020

IndiGo to raise Rs 4,000 crore to make up for coronavirus cash drain

New Delhi: IndiGo, India’s biggest airline, plans to raise as much as 40 billion rupees ($534 million) by selling new shares after the coronavirus pandemic halted air travel across the world, ravaging the cash flow of carriers.

The board of the airline, operated by InterGlobe Aviation Ltd., approved raising cash by selling shares to institutional investors, it said in a statement to stock exchanges Monday.

Airlines have found themselves perilously exposed to the pandemic as companies slashed business travel and tourism numbers tumbled, with governments imposing travel restrictions and closing borders. About 400,000 workers at airlines around the world have lost their jobs or are facing redundancy.

IndiGo reported a loss of 28.5 billion rupees in the three months through June, compared with net income of 12.03 billion rupees a year earlier. The carrier had also posted a loss of 8.7 billion rupees in the January-March quarter this year.
10/08/20 Anurag Kotoky/Print
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