New Delhi: IndiGo CEO Ronojoy Dutta on Friday said that the airline may not go ahead with its fundraising initiative and raising revenue through increased sales is the preferred path of the company.
In a stock exchange notification on August 10, the company had said the board of directors of InterGlobe Aviation Limited, which runs IndiGo airlines, has approved Rs 4,000 crore through a qualified institutions placement (QIP).
QIP is a capital-raising tool through which listed companies can sell shares, fully and partly convertible debentures, or any securities, other than warrants that are convertible into equity shares, to qualified institutional buyers.
Responding to shareholder's query at the company's 17th Annual General Meeting on Friday, IndiGo CEO said, "the board has passed and enabling resolution for a QIP to raise funds but we are waiting to see how the sales revenue side develops and at this point of time, I would like to say that QIP has a 50-50 chance of actually being implemented."
He further added that the company's focus is on increasing liquidity through sales revenue while having these financial initiatives on the side.