Shillong, September 5: The board of InterGlobe Aviation Ltd, the parent company of IndiGo, has approved the incorporation of a wholly-owned subsidiary focused on early-stage investments in aviation and related consumer sectors.
As per IANS, this subsidiary will target areas such as travel, lifestyle, hospitality, and transportation, according to an airline official.
In an official announcement to the stock exchanges, the company stated that its Board of Directors has given the green light for the establishment of this private limited company, initially funded with Rs 30 crore.
The subsidiary will be situated within the Special Economic Zone at Gujarat International Finance Tec-City, in line with the details provided in the exchange filing.
Furthermore, the airline’s board has endorsed the issuance of corporate guarantees, with a maximum value of $996 million, to support the financial obligations of the wholly-owned subsidiary.
The company’s BSE filing stated, “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 on Monday, has approved the incorporation of a wholly-owned subsidiary of the company, investment up to Rs 30 crore in one or more tranches, issuing corporate guarantees of up to $996 million (or an equivalent amount in Indian rupees or any other currency) to secure the payment obligations of aforesaid wholly-owned subsidiary.”
Gaurav Negi, the airline’s Chief Financial Officer, had previously revealed the creation of this venture during a post-earnings conference call on August 2.
