Westbridge Capital Buys IndiGo's shares worth 559 Crore

By siliconindia  |  Thursday, 13 August 2020, 11:58:22 AM IST

buying shares

 

Westbridge Capital bought a 1.41 percent stake in InterGlobe Aviation Ltd, which runs India’s biggest airline IndiGo, for 559 crore through an open market transaction. According to the block deal data on the BSE, Jwalamukhi Investment Holdings, an arm of Westbridge Capital, bought 5.43 million shares from Kotak Mahindra at an average price of 1,028 a piece.

InterGlobe Aviation reported a net loss of 2,844.3 crore for the quarter ended June 2020 against a net profit of 1,203.10 crore for the same period last year. Revenue from operations fell 91.9 percent to 766.7 crore for the June quarter over 9420.06 crore for the corresponding quarter last year. From the beginning of the year, InterGlobe Aviation has fallen 22 percent against a drop of 7 percent in the benchmark index, Sensex. From March lows, the stock gained 35 percent while Sensex was up by 50 percent.

Earlier this week, the board of directors of InterGlobe Aviation Ltd approved raising up to 4,000 crore through a qualified institutional placement offering. Shares of InterGlobe Aviation on Wednesday ended at 1,034.65 on the BSE, 10.06 percent higher than the previous close, while the benchmark index, Sensex fell 0.10 percent to close at 38369.63 points.

WestBridge Capital is a highly experienced investment firm, managing over $3 billion of capital, which focuses primarily on investments in India. WestBridge seeks to partner with some of India’s most promising mid-sized companies run by outstanding entrepreneurs and management teams for the long-term, whether they are public or private. The company leverages both its capital and experience to help companies succeed. A typical investment ranges from $25 million to $200 million, resulting in a substantial minority equity ownership, second only to the founder in many cases. The WestBridge’s team has a long-standing track record of leading investments and the team has also served on the boards of many of these companies and actively participated in setting strategic direction of these businesses.

IndiGo is India’s largest passenger airline with a market share of 48.9 percent as of March, 2020. It primarily operates in India’s domestic air travel market as a low-cost carrier with focus on its three pillars – offering low fares, being on-time and delivering a courteous and hassle-free experience. IndiGo has become synonymous with being on-time.

IndiGo is not only the most efficient low-fare operator domestically but is also comparable with global low cost airlines. It is constantly enhancing its engagement with passengers to augment their travel experience. From multichannel direct sales to online flight status checking through an exclusive IndiGo app for Android, the company has transformed air travel in India. Today, IndiGo is India’s most preferred airline.

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