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InterGlobe Aviation, parent company of IndiGo, has approached IFSC Gift City to set up an aircraft leasing company. Over the next five years, the company aims approximate gross foreign exchange outgo value of ₹11,500 crore. These investments will come from the promoter investment, said the company in its application to the IFSC. The company will enter into operating leasing, financial leasing and other services.
According to sources, IndiGo’s application to set up ‘ Interglobe Aviation Financial Services Ifsc Private Limited’ stated that the airline will operate in the IFSC aircraft leasing segment. Under the said company, it will function in operating leasing of aircraft, financial leasing of aircraft, and other services.
On the financial aspect, the person stated, “Free on Board (FOB) value for the export of services for a five-year-period is projected at ₹11,563 crore (per annum ₹2,312 crore). The foreign exchange outgo is ₹11,502 crore resulting in a Net Foreign Exchange (NFE) of ₹6,090 crore.”
“The company has informed IFSC that the source of funding will be through promoter contribution.”
IFSC Gift City has sought additional information from IndiGo. “Other services need to be specified. ‘Investment’ and ‘Import and indigenous requirement of materials and other inputs’ are shown as zero, clarifications on that too have been sought. Along with this, Income-tax returns of the proprietor or partners or audited balance sheet for the last three years have not been furnished and have been sought from the company.”
The decision on its approvals will be made on December 05.
IndiGo did not respond to businessline’s query.
Its premise will be spread across 15 sq meters, and the company has Krishan Bhargava who is the SVPof Aircraft Acquisition, Financing and treasuring at InterGlobe and Vineet Mittal, who is currently the VP of Finance, Financial Planning and Analysis at the company, as the two employees of the leasing company setup in October 2023. Bhargava has been with the company since 2007, whereas Mittal has been with the Interglobe since 2005.
In September, IndiGo had informed the exchanges that it aimed to set up shop in IFSC Gift city.
The company said that this company will be set up subject to approvals. “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 the aforesaid wholly-owned subsidiaries. Investment of up to ₹30 crore in one or more tranches through equity, quasi-equity, optionally convertible preference shares, optionally convertible debt instruments, or any combination thereof,” the company had said.
IndiGo has an order-book of 980 aircraft.
In August, businessline wrote that Air India was the first commercial airline to set up an aircraft leasing shop at IFSC Gift City. The estimated project cost is ₹7,253 crore.
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