IndiGo's parent InterGlobe Aviation has raised nearly Rs 3,795 crore by selling shares to institutional investors, according to a regulatory filing.
IndiGo’s parent InterGlobe Aviation has raised nearly Rs 3,795 crore by selling shares to institutional investors, according to a regulatory filing. Four promoter entities of the company — Rakesh Gangwal, Shobha Gangwal, Asha Mukherjee and Chinkerpoo Family Trust — mopped up Rs 1,265 crore through the institutional placement
of shares. An allotment of around 3.36 crore shares at a price of Rs 1,130 apiece has been approved by the company’s issue of securities committee of the board today, a filing to the BSE said.
The total proceeds from the sale of these shares to qualified institutional buyers would amount to around Rs 3,795
crore. Out of the total amount, fresh issue of shares is worth about Rs 2,530 crore and it comes at a time when the no-frills airline has embarked on ambitious expansion plans. InterGlobe Aviation got listed on the exchanges in
November 2015 and the promoters’ holding stood at 85.88 per cent at the end of June 2017. The company is required to have at least 25 per cent public shareholding within three years of listing.
Against this backdrop, promoter entities are selling shares of the company. Citigroup Global Markets India, J P Morgan India and Morgan Stanley India Company are the book running lead managers to the issue. Shares of InterGlobe closed marginally higher at Rs 1,135.80 on the BSE.