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.
The CEO said that the cost-cutting measures helped the company to bring down the daily cash burn to Rs 30 crore against Rs 40 crore a day in the end of the quarter when when operations had resumed on May 25.
Speaking at the airline's 17th AGM, Dutta said that currently, Indigo is utilising only 30-35 per cent of its fleet largely due to restriction in cities like Mumbai, Chennai and Kolkata.
IndiGo, the airline with largest fleet of over 270 planes, hopes to take the utilisation number up as the government has now allowed the domestic airlines to operate with 60% of their pre-COVID capacity.
Responding to a query of the shareholder's, Dutta said right now Indigo has no plans to purchase wide-body aircraft and the delivery of the Extra Long Range (XLR) aircraft will be here in the first quarter of 2024.
