Ahead of its IPO, InterGlobe Aviation on Monday raised Rs 832 crore from anchor investors by allotting shares at the upper price band of Rs 765 apiece. (Photo: Reuters)
IndiGo’s parent InterGlobe Aviation hit the capital markets with its public offer or initial public offering (IPO) of Rs 3,000 crore on Tuesday (October 27). Ahead of its IPO, InterGlobe Aviation on Monday raised Rs 832 crore from anchor investors by allotting shares at the upper price band of Rs 765 apiece.
Indigo’s initial public offer is the biggest in nearly three years.
Here are 5 things to know about the IPO:
1. The company has fixed the price band for its initial share sale at Rs 700-765, through which it could raise up to a little over Rs 3,000 crore.
2. The shareholding of promoters and promoter group in the company will fall to 84.9-85.2 per cent from the current holding of 94 per cent after the issue. The company plans to use the net proceeds for repayment of certain outstanding lease liabilities, consequent acquisition of aircrafts (Rs 1,166 crore), purchase of ground support equipment (Rs 34 crore) and for general corporate purposes. The issue will close on October 29 (Thursday).
3. According to InterGlobe Aviation it will retire nearly one-third of its total debt of Rs 3,912 crore from the share-sale proceeds.
4. Barclays Bank PLC, Kotak Mahindra Capital Company Limited and UBS Securities India will manage the issue.
5. For the financial year ended March 2015, InterGlobe Aviation reported net profit of Rs 1,295.58 crore up 173 per cent, against Rs 474.44 crore in the previous financial year. The company registered net profit of Rs 987.3 crore in the financial year ended March 2013.Total revenue of the company grew 25.16 per cent year-on-year to Rs 14,309.14 crore in FY 15 against Rs 11,432.12 crore last year. Presently, IndiGo has a fleet of 98 aircraft and about 75 of them are on operating lease — a business model which has helped the carrier lower costs.
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