The board of InterGlobe Aviation, the parent company of India’s largest airline, IndiGo, granted approval for the establishment of a Venture Capital division on Monday. The company officially announced in a filing to the stock exchanges that its Board of Directors has given the green light for the incorporation of a Private Limited Company, initially funded with INR 30 crore.
“This new division’s primary focus will be investing in early-stage companies operating in aviation and related consumer sectors, such as travel, lifestyle, hospitality, and transportation,” said an airline official.
The airline’s board has endorsed this investment, which will be established within the Special Economic Zone at Gujarat International Finance Tec-City, as detailed in the exchange filing.
Additionally, the airline’s board has approved the issuance of corporate guarantees, amounting to a maximum of USD 996 million, to ensure the financial obligations of the aforementioned wholly owned subsidiary.
“In compliance with Regulation 30 and other applicable regulations of the SEBI LODR Regulations, we wish to inform that the Board of Directors of the Company, at its meeting held today, September 4, 2023 (staring time: 10.30 a.m., closing time: 12.30 p.m.), has approved, incorporation of a wholly owned subsidiary of the Company, investment up to INR 30 crores in one or more tranches, issuing corporate guarantees of up to USD 996 million (or an equivalent amount in Indian Rupees or any other currency) to secure the payment obligations of aforesaid wholly owned subsidiary,” it said in the BSE filing.
The proposed combination outlines a multifaceted arrangement: firstly, the merger of Tata SIA Airlines Limited, operating under the brand name Vistara into Air India Limited (AIL), with AIL surviving as the amalgamated entity. Secondly, Singapore Airlines Limited (SIA) and Tata Sons Private Limited will acquire shares in the merged entity. Additionally, SIA will gain further shares through a preferential allotment.
Gaurav Negi, the airline’s Chief Financial Officer, had previously disclosed the creation of this venture while addressing participants during a post-earnings conference call on August 2.In another filing, the company said it has approved placing the order for 10 additional A320 NEO aircraft with Airbus and executing the amendment agreement to the purchase agreement.
These 10 aircraft will be part of the original 300 aircraft order of 2019.
