India budget carrier IndiGo plans to raise up to $533 million through a sale of shares to institutional investors.
Parent InterGlobe Aviation Limited has approved the ‘issue of equity shares by way of a qualified institutions placement’ it said in a filing.
It will help shore up the business as the Covid-19 downturn continues to heavily impact revenues.
It suffered a first quarter loss of $381 million.
Revenue plunged 92% during the quarter to June 2020.
"The aviation industry is going through a crisis of survival and therefore, our cash balance remains our number one priority," CEO Ronojoy Dutta said.
IndiGo is also understood to be discussing terms with lessors about selling and leasing back 12 of its ATR 72-600 aircraft to raise more funds.
According to local media the lessors are Aergo Capital and DAE, and each jet could fetch $18 million to $20 million for the low-cost carrier.
Written by Ray Montgomery, Asia Pacific editor
