IndiGo's Rs 2,500-crore IPO to open on October 26

After receiving approval from the Securities and Exchange Board of India (SEBI) for opening the Initial Public Offer (IPO), IndiGo's parent InterGlobe Aviation is likely to open the Rs 2,500-crore worth IPO on October 26.

The company is planning 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.

According to sources, the initial share sale might start on October 26 and end on October 28.

InterGlobe Aviation received approval from the market regulator last month.

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

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

In the last fiscal, the budget carrier saw its net profit jumping over four-fold to Rs 1,304 crore as it remained profitable for seven consecutive 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% 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.

(Image: Reuters)