IndiGo Approves USD 820 Million Investment in IFSC Subsidiary to Boost Aircraft Ownership

21 Nov 2025 , 11:28 AM

IndiGo has approved a capital investment of USD 820 million, which is roughly ₹72,940 million, in its wholly owned subsidiary InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC).

The airline plans to infuse the funds through a mix of equity shares and 0.01% non-cumulative optionally convertible redeemable preference shares (OCRPS). The infusion will take place in multiple tranches depending on the company’s requirements.

IndiGo said the capital will help its IFSC arm acquire aviation assets, including aircraft, allowing the airline to gradually shift toward asset ownership.

The company’s fleet has largely been built on operating leases. Management has been moving toward a more balanced structure in recent years by adding owned aircraft and diversifying its financing options.

The latest investment fits into that long-term strategy and reflects IndiGo’s focus on disciplined capital use and steady value creation for shareholders.

IndiGo continues to hold its position as one of India’s most preferred airlines. Its fleet has crossed 400 aircraft, and it operates more than 2,200 flights a day across 90 domestic and 40 international destinations.

The airline inducted 58 aircraft in 2024 and carried more than 118 million passengers in FY25. It was recently recognised by Skytrax as the Best Airline in India and South Asia at the World Airline Awards 2025.

IndiGo IFSC was set up on October 12, 2023, in GIFT City, Ahmedabad. The subsidiary is registered as a finance company under the International Financial Services Centres Authority Act and provides leasing and related financial services for aircraft and engines.

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