Tata Sons Ltd, the holding company of Tata group, and Singapore Airlines Ltd – the two promoters of Vistara – have infused an additional Rs 750 crore into the airline.
The infusion comes at a time when the aviation industry is struggling to stay afloat due to travel restrictions across the country coupled with the restrictions on flight capacity and seat pricing set by the government of India.
It is the airline’s fifth round of funding by the owners since April 2020 as Vistara struggles amid the pandemic.
Funding details
Tata Sons Private Limited has infused ₹382.5 crore and Singapore Airlines Limited has infused ₹367.5 crore. Tata Sons own 51 per cent of the airline, while the remaining 49 per cent is owned by Singapore Airlines.
The fund infusion is via equity shares at nominal amount per share of ₹10. The total number of shares allotted is 75 crore.
Similar events in past
In the past one year, this is the third time the full-service carrier has raised funds.
In May, Tata SIA Airlines Limited, the owner of Vistara airlines, had raised $110 million through External Commercial Borrowings (ECBs).
Tata Sons and Singapore Airlines had infused an additional ₹465 crore.
Vistara’s Performance
For FY20, Vistara’s revenue was ₹47,384.6 crore. However, for FY21 it dropped by more than 50 per cent to ₹27,308.6 crore.
This comes even as it managed to reduce its expenses from ₹63,017.4 crore in FY20 to ₹43,405.8 crore in FY21.
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