1. IndiGo plans to sell 10 per cent stake via IPO, to raise $400 million

IndiGo plans to sell 10 per cent stake via IPO, to raise $400 million

No-frills carrier IndiGo is planning to file documents for an initial public offering within the next 60 days, aiming to raise $400 million by selling a 10 per cent stake.

By: | Updated: June 24, 2015 1:46 PM
IndiGo, IndiGo airlines, IndiGo aircraft, indigo aircraft fleet, India aircraft order, IndiGo A320 neos, aviation, Business news

The IPO move will give Indigo a valuation of Rs 25,200 crore. (Reuters)

No-frills carrier IndiGo is planning to file documents for an initial public offering within the next 60 days, aiming to raise $400 million by selling a 10 per cent stake, according to The Economic Times report.

Citing a person familiar with the matter, the Economic Times report said that the stock sale that may value the airline at $4 billion — almost eight times the market valuation of its largest listed rival.

The IPO move will give the airline promoted by Rahul Bhatia’s InterGlobe Enterprises and aviation industry veteran Rakesh Gangwal a valuation of Rs 25,200 crore.

Jet Airways had a market capitalisation of Rs 3,242 crore at the close of trading on Tuesday and SpiceJet was valued at Rs 1,115 crore.

According to the report, the company will file a comprehensive IPO proposal known as a red herring prospectus with the Securities & Exchange Board of India, the capital markets regulator. Sebi usually takes 6-8 months to approve such documents, which means IndiGo’s IPO may possibly be pushed to next year.

IndiGo retained its leadership in the domestic market during May, a month that saw a 9 per cent increase in the number of passengers carried over the previous month with more people opting for air travel during summer holidays.

IndiGo clocked 38.9% market share, carrying 27.69 lakh passengers during the month. The Gurgaon-headquartered carrier maintained its lead over Jet Airways (18.3%), Air India (15.8%), SpiceJet (11.7%), GoAir (8.6%), JetLite (3.2%), AirAsia India (1.3%), Vistara (1.3%), Air Costa (0.9%) and Air Pegasus (0.1%).

With agency inputs

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