InterGlobe Aviation will set up a venture capital arm to make investments in early stage companies that are into aviation, consumer and allied sectors.

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The board of the company, the parent of the country's largest airline IndiGo, approved the incorporation of a Limited Liability Partnership (LLP) for venture capital investments on Wednesday.

IndiGo's Chief Financial Officer Gaurav Negi said it will be going for regulatory approvals for setting up the LLP and that internal discussions are happening about the possible investments. He said the LLP will be set up with an initial investment of Rs 7 crore.

"We are getting into venture capital arm side where we will be making early stage investments in early stage companies...," he said during a call with analysts after announcing the company's June quarter financials.

The LLP will focus on "investment in startups operating in aviation, consumer and allied sectors such as travel & lifestyle, hospitality and transportation," a regulatory filing said.

IndiGo, which is the country's largest carrier with a domestic market share of more than 63 per cent, is expanding its operations and recently placed an order for 500 planes with Airbus. The airline has an outstanding aircraft order book of nearly 1,000 aircraft.