Analysts downgrade IndiGo as second Covid-19 wave weakens outlook

The QIP should shore up its cash reserves currently at over Rs 7,000 crore

The InterGlobe Aviation (IndiGo) stock ended flat in trade after the company announced plans to raise Rs 3,000 crore by issuing equity shares through the qualified institutional placement (QIP) route. The company is looking to improve its cash position after the second wave of infection has dented demand and led to dip in volumes.

In August last year, the company’s Board had approved a QIP of Rs 4,000 crore with the timing of the same linked to the sales trajectory. The company, however shelved the equity raise plan in January this year given the gradual recovery in passenger traffic; the