IndiGo IPO Likely To Open On October 26: Source

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No-frills carrier IndiGo's parent InterGlobe Aviation is likely to open the Rs 2,500-crore worth initial public offer on October 26.

Under the offer, the company plans to issue fresh shares worth Rs 1,272 crore. An equivalent amount can be raised through sale of up to 3.01 crore shares by its existing shareholders.

IndiGo IPO Likely To Open On October 26: Source

The initial share sale is likely to start on October 26 and end on October 28, sources said. Last month, InterGlobe Aviation received approval from the Securities and Exchange Board of India (Sebi) for the IPO.

The preliminary papers for the share sale -- for raising up to Rs 2,500 crore -- were filed in June this year.

InterGlobe Aviation runs the country's biggest airline by market share under the IndiGo brand. IndiGo is one of the two profit-making domestic airlines. The only other profitable airline is GoAir.

The budget carrier saw its net profit jumping over four-fold to Rs 1,304 crore in the last fiscal as it remained profitable for seven straight years.

This was also the highest ever annual profit registered by the airline since its inception in 2005. It had posted a net profit of Rs 317 crore in the year ended March 31, 2014.

IndiGo's good showing in the last financial year was mainly on account of higher revenues despite the domestic aviation sector witnessing turbulent times that adversely impacted the balance sheets of most local carriers.

The carrier witnessed its revenues climbing to Rs 14,320 crore in the 2014-15 financial year. This is an increase of 25 per cent from Rs 11,447 crore revenues recorded in the fiscal ended March 31, 2014.

At present, listed domestic airlines include Jet Airways and SpiceJet while trading in long-grounded Kingfisher Airlines has been suspended for a long time.

PTI

Read more about: ipo, indigo
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