InterGlobe Aviation Shares Reach 52-Week High After Company’s Airbus Deal

The share price of InterGlobe Aviation, Indigo's operator, reached a 52-week high on Tuesday, June 20. The jump in share price came after Airbus and Indigo's historic deal for 500 A320 aircraft.

The share price of InterGlobe Aviation, Indigo’s operator, reached a 52-week high on Tuesday, June 20, after the airline announced a historic order of 500 A320 aircraft from Airbus. The new aircraft will be delivered to IndiGo by 2023-2035, with an estimated order value of $50 billion. The order includes various aircraft models like the A320 Neo, A321 Neo, and A321 XLR. With this, IndiGo has recorded the largest-ever purchase in Aviation history, besting the deal made by Air India in February this year. The Air India deal involved an order of 470 aircraft from Boeing and French Aerospace giant–Airbus.

The stock for InterGlobe Aviation began at Rs 2,499 per share on Tuesday against the previous closure of Rs 2,432.70 per equity. At 2:18 p.m. on the Bombay Stock Exchange ( BSE), it was up by around 0.53 percent, trading for Rs 2,445.60 per share.

As per the Mint, the stock’s price has climbed by more than 18 per cent over the past six months. InterGlobe Aviation’s stock price has increased by around 58 per cent in the last year. The stock has given its shareholders returns of about 106 percent over the past five years.

Indigo- Airbus Deal

Indigo currently has 304 aircraft in service and has an existing order for 480 aircraft that will be delivered between FY24 and FY30. With this, now the company’s pending aircraft orders will reach around 1,000, said Global Research and broking firm Morgan Stanley, as reported by Moneycontrol. “The broking firm also sees market share gains and margin improvement as two key drivers for IndiGo and expects both to be inching up in the near term.” added the firm.

This biggest-ever aviation purchase agreement was signed at the current Paris Air Show 2023 by representatives of IndiGo. It was led by the company’s promoter and Managing Director Rahul Bhatia, and Airbus CEO Guillaume Faury.

After the deal, Pieter Elbers, Chief Executive of IndiGo, said in a statement that the recent order placed on Monday will help the business achieve its objective of fostering economic growth, social cohesion, and mobility within India.

Indigo placed its first order with Airbus in 2005, followed by 2011, 2014 and 2019. It recorded a total order of 830 A320 aircraft before this purchase.