IndiGo sets $500 million IPO for next week
Monday, 19 Oct, 2015
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The planned public offering of India’s largest airline is being touted for October 27.
Parent company InterGlobe Aviation Ltd will offer shares between October 27 and 28 in a sale worth about $500 million.
InterGlobe had received approval for an IPO from the Securities and Exchange Board of India (SEBI) last month.
IndiGo is the only Indian carrier that has consistently posted profits in recent years.
Experts have welcomed the news and expect the sale to prove successful.
"Looking at the current market conditions, the IndiGo IPO will be oversubscribed several times. IndiGo has the largest market share in the domestic market, very good safety record and competent management," said Satish Modh, director of the Institute of Management Studies and Research at Vivekanand Education Society.
Revenue for the last fiscal year rose 25% on higher passenger loadings, and along with lower fuel costs, it posted a four-fold increase in profits.
"Low aviation fuel prices have made the airline business lucrative. I don’t see a surge in the fuel prices for couple of years. Further, IndiGo has established a very strong brand in the airline industry," Modh added.
IndiGo has an estimated 34% share of the Indian domestic market operating more than 600 flights a day.
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