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