Shares of InterGlobe Aviation gained over 12% on Wednesday, following reports that the airline was in talks with two lessors to sell and lease back 12 of its ATR 72-600 aircraft and their engines.
As per media reports, the company said it was in discussion for sale and lease back of its unencumbered assets, which includes the 12 ATRs.
"We are working to close these transactions, but it will be difficult to give a specific timeframe for its completion, " the company added.
Share price of InterGlobe Aviation- the parent firm of India's largest airline by market share IndiGo- touched an intraday high of Rs 1056, rising 12.33% as against the earlier closing of Rs 940.05 on BSE. Stock price of InterGlobe Aviation also touched an intraday low of Rs 935.30, after opening at Rs 940.
InterGlobe Aviation stock has risen 6.7% in one week and 1.73% in one month. The stock has traded in a wide range of Rs 120.7.
The stock trades higher than 5, 20, 50 and 100-day but lower than 200-day moving averages. Market cap of the firm stood at Rs 39,812.95 crore as of today's closing.
Ronojoy Dutta, Chief executive officer of the airline had earlier said in an analyst call that the airline was working on sale and leaseback of their unencumbered assets which are in advanced stages of discussion. He had added,"We are also in discussions with export credit agencies for obtaining moratorium towards principal repayment for aircraft on finance leases."
In another update, InterGlobe Aviation's board approved to raise Rs 4,000 crore through sale of equity shares to institutional investors by way of a qualified institutions placement.
As per the company's management, the aircraft carrier also plans to generate Rs 2,000 crore of additional liquidity by sale and leaseback (SLB) of its owned aircraft.
IndiGo-the largest airline in the country with a fleet size of 274 aircraft had reported a weak set of numbers for this June quarter, due to halt of operations in the wake of Covid-19 pandemic. IndiGo registered a loss of Rs 2,844 crore and saw revenue decline of nearly 90% YoY.
Share of InterGlobe Aviation closed at Rs 1,034.65, rising 10.06% on BSE.