The board of directors of InterGlobe Aviation, which operates Indian carrier, IndiGo, has approved raising up to 4,000 crore rupees ($540 million) through a qualified institutions placement, the company said today.
The board of directors has considered and approved the raising of funds for an aggregate amount not exceeding $540 million through an issue of equity shares by way of a qualified institutions placement, in accordance with the relevant provisions of applicable law and subject to approval of the company's shareholders and receipt of applicable regulatory approvals", the airline said in a stock exchange notification.
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.
The Indian carrier has hired Citigroup Global Markets and Bank of America to advise on its proposed QIP.