New Delhi: IndiGo’s plan to raise up to Rs 4,000 crore through a qualified institutional placement (QIP) depends on the sales revenue pick-up in the coming days, its CEO Ronojoy Dutta said on Friday. “At this point in time, I would like to say that there is a 50:50 chance of the QIP happening,” Dutta said at the online annual general meeting of InterGlobe Aviation, IndiGo’s parent company.
On August 10, InterGlobe Aviation told the BSE that it will raise up to Rs 4,000 crore through a QIP. Dutta on Friday said the company’s board of directors has passed the enabling resolution to raise funds through QIP but whether “we ultimately go for it or not depends on how the sales revenue side develops”.
The aviation sector has been hit hard due to travel restrictions amid the coronavirus pandemic. India’s largest airline IndiGo had on July 29 announced a massive loss of Rs 2,844 crore for the quarter ended June 30. In the corresponding period a year ago, it had posted a net profit of Rs 1,203 crore.
The airline on July 27 said it is implementing “deeper” pay cuts of up to 35 per cent for its senior employees in order to reduce its cash outflow amid the coronavirus pandemic. From May onwards, IndiGo implemented pay cuts of up to 25 per cent for its senior employees.
The pay cuts came after the airline’s announcement on July 20 that it would lay off 10 per cent of its workforce. Scheduled international flights have been suspended in India since March 23 due to the coronavirus-triggered lockdown. However, special international passenger flights have been operating in India under the Vande Bharat Mission since May and under bilateral ‘air bubble’ arrangements formed between India and other countries since July.
Domestic flights resumed in India after a gap of two months on May 25.
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