In a significant development for India's aviation sector, IndiGo shares witnessed a strong upward movement on Monday, gaining nearly 2% following the announcement of its inclusion in the prestigious BSE Sensex index. The stock exchange confirmed that InterGlobe Aviation, IndiGo's parent company, will become part of the 30-share benchmark index starting next month.
Market Reaction and Sensex Reshuffle
Following the BSE announcement, IndiGo shares climbed as much as 1.93% to reach ₹5,953.00 per share on the Bombay Stock Exchange. This positive momentum comes despite the stock hitting its all-time high of ₹6,225.05 just three months earlier on August 18, 2025.
The reshuffle will see InterGlobe Aviation replacing Tata Motors Passenger Vehicles in the Sensex, effective from December 22 onwards. In another significant change, Max Healthcare Institute shares will take the place of IndusInd Bank in the BSE Sensex 50, while IndusInd Bank will move to the BSE Sensex Next 50 index.
The market response was immediately visible, with IndiGo's market capitalization crossing ₹2.26 lakh crore, while Tata Motors Passenger Vehicles saw its share price decline by 1.5%, reducing its market cap to over ₹1.32 lakh crore.
Major Capital Investment Plan
In a parallel development that underscores the company's growth ambitions, IndiGo recently revealed plans for a substantial capital investment of $820 million (approximately ₹7,294 crore) in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited.
According to a regulatory filing submitted on November 21, the investment will be executed through a combination of equity shares and 0.01% Non-Cumulative Optionally Convertible Redeemable Preference Shares (OCRPS), deployed in one or multiple tranches. The primary objective of this fund infusion is to facilitate the acquisition of aviation assets, particularly enabling aircraft ownership.
The detailed investment structure involves IndiGo subscribing to equity shares of IndiGo IFSC with a face value of ₹10 per share, aggregating to $770 million (₹6,849.2 crore), valued at ₹10.92 per share as determined by an Independent Category-1 Merchant Banker. Additionally, the company will subscribe to 0.01% OCRPS amounting to $50 million (approximately ₹444.8 crore) at a face value of ₹100 per share. This capital infusion is scheduled to occur during FY 2025-26 in multiple installments.
Long-term Performance Analysis
IndiGo's stock performance reveals an interesting pattern across different time horizons. While the shares have declined by 4% over the past three months, they have managed to secure a 6% gain in the six-month period. The broader performance metrics are even more impressive, with the airline stock rallying 27% on a year-to-date (YTD) basis and surging 41% over the past year.
The long-term growth story is particularly compelling for investors. IndiGo share price has jumped an astonishing 127% over two years and has delivered multibagger returns of 253% during the past five years, cementing its position as one of the market's standout performers.
By Monday afternoon, IndiGo share price was trading 0.30% higher at ₹5,857.50 per share on the BSE, reflecting sustained investor confidence following the dual announcements of Sensex inclusion and substantial capital investment plans.
