Indigo makes strong debut on bourses at an opening price of Rs 856, shares surge 15%

Indigoraised Rs 3,008.5 crore at issue price of Rs 765 per share from its recently concluded, over-subscribed initial public offering (IPO).. (AP)

InterGlobe Aviation, which runs no-frills carrier IndiGo, made a strong debut on the bourses on Tuesday at an opening price of Rs 856 on BSE. The shares surged over 15 per cent against the issue price in the early trade.

The stock listed at Rs 856, reflecting a gain of 11.89 per cent as compared to the issue price on BSE. It touched a high of Rs 898, a sharp gain of 17.38 per cent.

At NSE, shares of the company opened at Rs 855.80, a surge of 11.86 per cent from the issue price.

The company has raised Rs 3,008.5 crore at issue price of Rs 765 per share from its recently concluded, over-subscribed initial public offering (IPO).

This was the biggest IPO in the Indian market since Bharti Infratel’s over Rs 4,000-crore public offer in December, 2012.

In InterGlobe Aviation’s IPO non-institutional investors category was subscribed 3.57 times. In contrast, the portion set aside for retail investors witnessed 92 per cent subscription, while the employees category was subscribed 13 per cent.

The IPO, which opened for subscription from October 27-29, was subscribed 6.15 times at price band of Rs 700-765 a share.

InterGlobe Aviation, the parent company of IndiGo, had raised Rs 832 crore from anchor investors before its public offering.

IndiGo has a fleet of 98 aircraft and about 75 of them are on operating lease – a business model which has helped it lower costs.