IndiGo owner to list shares on Nov 10

Moneycontrol Bureau

The much-touted InterGlobe Aviation will be listed on bourses on November 10. The company which owns low-budget airlines IndiGo raised Rs 3008.5 crore at the issue price of Rs 765 per share from its IPO.

The public issue was priced at Rs 700-765. The company has now fixed the issue price at Rs 765 per share. Though the issue was over-subscribed 6.15 times, retail participation was tepid. The company has raised Rs 832 crore from anchor investors by allotting shares at the upper limit of price band at Rs 765 apiece.The new listing may see good action in bourses as Qatar Airways has expressed interest in buying stake in the company. According to a media report, it’s keen to take a stake in IndiGo once shares start trading following an initial public offering, (IPO). The second-biggest Gulf airline could seek a maximum 49 percent of IndiGo—valued at USD 2 billion based on the IPO price—to boost its exposure to one of the world’s fastest-growing travel markets.

Proceeds from fresh issue will be used to retire certain outstanding lease liabilities and consequent acquisition of aircraft Rs 1165.6 crore, purchase of ground support equipment for airline operations. The company proposes to deploy an aggregate amount of Rs 33.4 crore towards purchase of certain ground support equipment for airline operations, such as ramp coaches, tractors, ground power units and push-backs.