The Rs.3,018 crore initial public offer (IPO) of air-carrier Indigo’s parent company InterGlobe Aviation (IGA) – the biggest in almost three years – marked an over-subscription by 4.95 times on the last day of the three-day issue. The IPO generated demand worth about Rs 18,000 crore, as it received bids for 18,49,36,110 shares against the total issue size of 3,01,22,088 shares, data available with the NSE till 1900 hours showed. The qualified institutional buyer category of the issue drew a strong response and was subscribed 2.96 times the portion reserved for them, according to the combined exchange data. In contrast, the portion set aside for retail investors witnessed 90 per cent subscription, while the employees category was subscribed 12 per cent. “Retail investors want listing gains, but that is not being seen in the case of this IPO”, said Deven Choksey, group managing director and chief executive officer of KR Choksey Shares and Securities Pvt. About 70 per cent of the offering, or 127 million bids, came from foreign institutional investors (FIIs).
Advertisement
IndiGo, India’s only consistently profitable airline, is selling shares at between 700 rupees (USD11) and 765 rupees each and plans to use the money raised to expand operations and trim debt.
These anchor investors include Fidelity Investments, GIC Pte Ltd, Acacia Partners LP, HDFC Trustee Co.
The company allotted shares to 40 anchor investors, including the Singapore government, Goldman Sachs India Fund, Credit Suisse Singapore and Sundaram Mutual Fund, at a price of Rs765 apiece.
The IPO consists of a fresh issue of Rs 1,272.2 crore, and an offer for sale by promoters and existing shareholders to the tune of Rs 1,750 crore.
This is the largest IPO in the Indian market since Bharti Infratel’s over Rs 4,000-crore public offer in December, 2012. Existing shareholders will sell a little more than 2.28 crore shares instead of the 2.61 crore share sale planned earlier.
On Monday, InterGlobe raised Rs 832 crore from 43 anchor investors.
Advertisement
The fleet size of IndiGo comprises of 98 aircrafts, of which about 75 have been taken on lease. Ltd, Barclays Bank Plc, Kotak Mahindra Capital Co.
