Tata Sons & Singapore Airlines Gave 2000 Cr to Vistara for Expansion
This fund infusion comes at a time when the airline has embarked on ambitious expansion plans, including buying 19 Airbus, Boeing planes worth $3.1 billion.
Indian domestic carrier Vistara, which is preparing to fly overseas, has received Rs 2,000 crore from Tata Sons and Singapore Airlines, according to a regulatory filing.
The airline, majority-owned by Tatas, commenced operations more than three years ago and currently has a fleet of 22 planes.
On October 12, the board of Vistara approved allotment of 200 crore equity shares of Rs 10 a piece to Tata Sons Pvt Ltd and Singapore Airlines, a filing with the Corporate Affairs Ministry showed.
The allotment of these shares amounts to a fund fusion of Rs 2,000 crore.
As per the filing, the board approved issuance of little over 101.99 crore shares to Tata Sons and 98 crore shares to Singapore Airlines.
Vistara did not offer any comments about the fund infusion.
Tata Sons holds 51 per cent stake and the remaining 49 per cent is owned by Singapore Airlines in Vistara.
The fund infusion comes at a time when the airline has embarked on ambitious expansion plans, including buying 19 Airbus, Boeing planes worth $3.1 billion. While making the announcement about aircraft purchases in July, Vistara had also announced leasing 37 new A320 neo family planes.
Vistara is looking to fly to international destinations and is awaiting final approvals.
The airline posted a loss after taxation of Rs 431.09 crore for the year ended March 31, 2018, according to a filing made by Tata Sons to the ministry.
Vistara started commercial operations on January 9, 2015. It operates around 120 flights every day and flies to 22 destinations.