IndiGo is to raise up to ₹4,000 crore through an issue of equity shares by way of a qualified institution placement, the company said in a statement to the Bombay Stock Exchange on Monday.

This decision was taken by the Board of Directors of InterGlobe Aviation at its meeting held on Monday.

The Board had earlier met on July 30 and decided to “further deliberate on the matter relating to raising of funds,” at a subsequent board meeting.

Quarterly losses

The decision comes in the backdrop of the airline reporting its highest quarterly loss of ₹2,844 crore during the April-June 2020 quarter.

The airline blamed the closure of scheduled domestic air operations till May 24 and lower capacity deployment thereafter on account of Covid-19 for the loss.

It remains to be seen how the airline’s financial fortunes will be remain in the months ahead as the government has decided to extend the cap on domestic air fares at the higher and lower levels till November 24 and limited domestic flying to 45 per cent of pre-Covid capacity. The fare cap was earlier supposed to be in place till August 24.

Ronojoy Dutta, whole-time director and President, IndiGo, told analysts after the results were declared on July 29, that “markets are very dynamic, directional and seasonal. It is impossible for anyone to predict and decide what the right level of fares should be... we can do a better job in managing the revenues without the fare cap. It will also work to the advantage of the customer,” he said.

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