InterGlobe Aviation shares jump over 7 pc on placing order for 300 Airbus planes

Shares of InterGlobe Aviation bounced back on Wednesday after three days of fall, rising over 7 per cent after IndiGo placed a firm order for 300 A320neo family aircraft.

The scrip climbed 7.19 per cent to close at Rs 1,511.70 on the BSE. During the day, it jumped 8.79 per cent to Rs 1,534.35.

On the NSE, it advanced 7.18 per cent to close at Rs 1,511.

In terms of traded volume, 2.80 lakh shares of the company were traded on the BSE and over 60 lakh units on the NSE during the day.

Placing one of the single largest aircraft orders, IndiGo will buy 300 Airbus 320 neo family planes as the budget carrier continues with its ambitious growth plans.

While the price details were not disclosed, the order will be worth over USD 33 billion (over Rs 2.3 lakh crore) on the basis of catalogue price of A320 neo plane that was published in 2018.

Shares of InterGlobe Aviation fell 3 per cent on Tuesday after the Directorate General of Civil Aviation (DGCA) asked IndiGo not to use A320 Neo planes which are fitted with PW engines that have already been used for over 3,000 hours, or face grounding of aircraft.

InterGlobe Aviation shares had on Friday tumbled 12 per cent, wiping more than Rs 7,600 crore off its market valuation after the company posted a substantial loss in the September quarter.

IndiGo's parent InterGlobe Aviation on Thursday reported widening of its net loss to Rs 1,062 crore for the September quarter, hit by higher costs related to operating lease liabilities.