In a stimulus to the airline, InterGlobe Aviation (Indigo) has decided to raise up to Rs 3,000 crore by selling shares to institutional investors. The big development comes after Indigo’s parent company InterGlobe Aviation decided to take the Qualified Institutions Placement (QIP) route to raise the fund. The Covid pandemic has badly affected the airline and overall aviation industry in India

The fundraising plan of the company comes at a time when the airline industry is facing significant headwinds due to the coronavirus pandemic that has resulted in falling passenger demand and low occupancy in flights. In a regulatory filing, InterGlobe Aviation said its board, during the meeting on Monday, approved "raising of funds for an aggregate amount not exceeding up to Rs 3,000 crore".

This will be done through the issuance of equity shares by way of Qualified Institutions Placement (QIP). The Gurugram-based airline had reported a net loss of Rs 620.1 crore, its fourth consecutive quarterly loss, in the three months ended December 2020. The company is yet to announce its earnings for the 2021 March quarter as well as for the fiscal year ended March 2021. While the airline industry was slowly on the recovery path, the second Covid wave has hit the sector hard.

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