This Large-cap Multibagger Aviation Company Approves Rs 394 Crore Investment in IndiGo IFSC - Know more here!

Over the past year, the stock has delivered a return of 44.97 per cent, and over a three-year period, it has achieved a multibagger status with a return of 155.85 per cent. 

InterGlobe Aviation Limited, the parent company of IndiGo, has announced a significant financial move. The company's Board of Directors, in a meeting held on March 12, 2025, approved an investment of up to Rs 394 crore (approximately USD 45 million) in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC). This investment will be made in one or more tranches and is classified as a related party transaction, given that IndiGo IFSC is a subsidiary of InterGlobe Aviation.

IndiGo IFSC, incorporated on October 12, 2023, under the Companies Act 2013, is yet to commence operations as of March 31, 2024, and thus has not generated any turnover for FY 2023-24. The investment aims to finance aviation assets, repay outstanding loans, and support general corporate purposes. The transaction will be executed at the fair valuation of equity shares, as determined by an independent Category-1 Merchant Banker, ensuring it is conducted at arm's length. The completion of this acquisition is expected within three months from the Board's approval.

 InterGlobe Aviation Limited, trading under the symbol INDIGO, is a prominent player in the Indian aviation industry. As of the latest data, the company's stock is priced at Rs 4,716, with a market capitalization of Rs 1,80,064.93 crore. Over the past year, the stock has delivered a return of 44.97 per cent, and over a three-year period, it has achieved a multibagger status with a return of 155.85 per cent. The stock has seen a 52-week high of Rs 5,033.2 and a low of Rs 3,015.1, reflecting its volatility and growth potential in the market.

In the Quarterly Results of Dec-24, revenue stood at Rs 22,110.70 crore, reflecting a YoY growth of 13.67 per cent and a QoQ growth of 30.30 per cent. Net profit was Rs 2,442.00 crore, showing a decline of 18.56 per cent YoY and a steep decline of 346.97 per cent QoQ. The net profit margin for Dec-24 was 11.04 per cent, compared to -5.83 per cent in Sep-24 and 15.41 per cent in Dec-23.

For the full-year FY24, revenue reached Rs 68,904.34 crore, marking a growth of 26.55 per cent compared to FY23. Net profit stood at Rs 6,073.80 crore, reflecting a growth of 3.97 per cent. The net profit margin for FY24 was 8.48 per cent, compared to -3.21 per cent in FY23.

As of December 2024, the shareholding pattern stands as follows: Promoters hold 49.27 per cent, Foreign Institutional Investors (FIIs) hold 24.83 per cent, Domestic Institutional Investors (DIIs) hold 21.14 per cent, the Government holds 0.07 per cent, and the Public holds 4.69 per cent. Compared to the previous quarter, there is no significant change in the shareholding pattern.

With a PE ratio of 30x, the company trades at a premium compared to the industry PE of 29.8x. The company has ROCE of 24.5 per cent.  

Investors must keep this Large-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.