India’s largest carrier IndiGo launched the country’s biggest initial public offering (IPO) in three years Tuesday, seeking to raise $460 million to extend its dominance of the budget airline sector.
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The list of anchor investors for InterGlobe include Credit Suisse Singapore Ltd, Abu Dhabi Investment Council – Tallyfish, Monetary Authority of Singapore, Goldman Sachs India Fund, Indus India Fund (Mauritius) Ltd, Kuwait Investment Authority Fund 224, DB global (Asia) Ltd, DSP Blackrock India Tiger Fund and Sundaram Mutual Fund among others. The move will give a boost to the New Delhi-based company’s Rs 3,136-crore IPO, biggest in almost three…
The operator of the profitable no-frills carrier IndiGo has set a price band for the public offer at Rs 700-765. with three of the promoters deciding to sell less number of shares than proposed earlier. Non-institutional investors bid for 3,545 shares against the quota limit of up to 58,19,746 shares. It fetched a total of Rs 832 crore, the company said on Monday.
Proportionately, the proportion of shares available for retail investors, high networth individuals and Qualified Institutional Buyers (QIBs) has been increased, they added. Promoters and non-promoters are selling shares worth about Rs 1,750 crore.
According to data from the National Stock Exchange, of the 3,01,22,088 shares put up on the bourse, 2,42,41,380 shares received bids by 5 p.m.
Outlook and Valuation: At the upper end of the price band, Interglobe is valued at 2.1x EV/Sales and at a P/E of 21.3x (FY2015).
The IPO would conclude on October 29. Barclays Bank PLC, Kotak Mahindra Capital Company Limited and UBS Securities India will manage the issue.
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The fleet size of IndiGo comprises of 98 aircrafts of which about 75 have been taken on lease.
