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Wednesday, 9 July 2014

IndiGo revives IPO plans after a gap of four years

Mumbai: After a gap of four years, InterGlobe Enterprises, the company that owns IndiGo, India’s biggest airline by market share, has revived plans to launch an initial public offering (IPO) following improvement in market conditions after the induction of a new government at the Centre.

InterGlobe is believed to be in discussions with merchant bankers on the pricing and timing of the issue, though the management has not made any announcement in this regard. IndiGo did not respond to a query.

The size of the issue is expected to be $400 million, the same amount of money the company was planning to raise through an IPO in the first-half of 2010. The low-cost airline was launched in the second-half of 2006 and since then has emerged as the fastest growing airline in India.


IndiGo, which has 31.6 per cent domestic market share, is the only profitable Indian carrier. For 2012-13, the airline reported a net profit of Rs.787 crore.

Delhi-based Rahul Bhatia’s InterGlobe Enterprises holds over 51 per cent stake in IndiGo while India-born U.S. citizen Rakesh Gangwal’s Caelum Investment LCC holds 48 per cent stake. Who will dilute how much stake in the IPO is not clear.
Read news in full 05/07/14 Lalatendu Mishra/The Hindu

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