Indigo To Create A New Venture Arm At Gift City With 30 Crore Initial Capital At GIFT City
Indigo has announced that it would create a venture arm which would invest in start-ups in aviation. The creation of the arm was announced at the post earning conference last month. The announcement was for 30 crore investment in a private limited company at the Gift City or Gujarat International Finance Tec-City.
Indigo, one of the oldest domestic airlines in the country, would invest in early stages company or start-ups, in aviation sector and consumer sectors, such as travel and lifestyle, hospitality and transportation sectors.
“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 today, September 4, 2023 (staring time: 10.30 a.m., closing time: 12.30 p.m.), has approved:
- Incorporation of a wholly owned subsidiary of the Company
- Investment up to Rs 30 crore in one or more tranches
- c) 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.” Business Today reported the business filing.
The board have also approved the issuing of the corporate guarantees of $996 million to secure payment obligations of the financial arm. The venture would be a fully owned as a subsidiary of InterGlobe Aviation Ltd though no name or exact functioning of the new arm was given in detail.
Earlier, Air India had begun a leasing unit, first of its kind, at Special Economic Zone at Gujarat International Finance Tec-City. Indigo’s chief financial officer, Gaurav Negi, announced the new venture arm on August 2, reported moneycontrol.
The government in order to promote the airline companies leasing, had excused aircraft leasing companies from corporate and withholding tax on transactions on leasing. This is part of government”s plan to bring in a global aircraft leasing hub in the country which could stand up to international centres like Singapore and Dublin.
