The initial public offering (IPO) of InterGlobe Aviation opened on a strong note on Tuesday, with the issue nearly receiving full subscription on the first day of the three-day offering. The public issue was subscribed 87% as on 6.00 pm, stock exchange data showed.
The qualified institutional buyers (QIBs) portion was subscribed nearly three times. A little over 2.52 crore shares were subscribed, against 85.23 lakh shares reserved for this category. The non-institutional category comprising of high net worth individuals (HNIs) was subscribed 0.19 times. HNIs bid for about 11 lakh shares, against 58.2 lakh shares reserved.
The retail book was subscribed close to 0.05 times on day one, exchange data showed. Retail investors, whose investment should not exceed R2 lakh as per Sebi rules, bid for 7.1 lakh shares, against 1.35 crore on offer.
InterGlobe Aviation raised R832.02 crore on Monday by allotting more than 1 crore shares to anchor investors in a pre-IPO placement at a price of R765 apiece. Anchor investors included Fidelity, the Singapore government, Merrill Lynch, Credit Suisse, Goldman Sachs, HDFC MF, DSP BlackRock, and Abu Dhabi Investment.
The company has set a price band of R700-765 per share for the three-day offering that ends on Thursday. At the upper price band, the company’s market capitalisation stands at nearly Rs 27,000 crore and ranks 22nd among the list of world’s most valued airline companies. US-based Delta Airlines is the world’s most valued airline with R2.61 lakh crore market cap.
The IPO consists a fresh issue of R1,272.2 crore, and an offer for sale (OFS) by promoters and existing shareholders to the tune of R1,750 crore. Citi Group, JP Morgan and Morgan Stanley are the global coordinators for the issue, while Barclays Capital, Kotak Investment Banking, UBS are the book running lead managers.
InterGlobe’s IPO will be the biggest primary market offering since Bharti Infratel’s R4,100 crore-plus public issue in December 2012, statistics compiled by Prime Database showed. The company filed its preliminary prospectus with Sebi on June 30, 2015 and received regulatory clearance on September 11.
InterGlobe’s IPO is also the first by an Indian airline since the 2006 listing of Deccan Aviation. Jet Airways had raised R1,900 crore in February 2005.
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