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<ul><li>The shares of <keyword id="6354706" type="COMPANY" weightage="20" keywordseo="IndiGo">IndiGo</keyword> fell by over 3% on Tuesday. </li><li>IndiGo currently runs two daily flights to China, which has seen cancellations reported PTI. </li><li>The <keyword id="44023" type="ORGANIZATION" weightage="20" keywordseo="airlines">airlines</keyword> parent company <keyword id="2351966" type="ORGANIZATION" weightage="20" keywordseo="InterGlobe-Aviation">InterGlobe Aviation</keyword> saw a twofold jump in profits of ₹496 crore.</li></ul>The <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">Coronavirus</keyword> outbreak in China has spread panic across the world with hundreds and thousands of people delaying their trips. Indian airlines IndiGo has been at the receiving end of these cancellations. IndiGo currently runs two daily flights to China, which are on the receiving end of cancellations, reported PTI. The Coronavirus broke out in Wuhan, which is a big business centre in China. The shares of IndiGo fell by over 3% to trade at ₹1448.3 on Tuesday. This is in spite of the fact that the company reported good earnings for the third quarter, a day before. The airlines parent company InterGlobe Aviation saw a twofold jump in profits to ₹496 crore. In the same quarter the previous year, the company’ profits stood at ₹185.2 crore. "We started operations in 7 new international routes and 17 new domestic routes and operated a peak of 1,634 daily departures during the quarter. I am very enthusiastic about the way we have been developing our network, connecting cities large and small to provide more choice to our customers," IndiGo CEO Ronojoy Dutta said. However, IndiGo is not the only one to be facing issues as airlines across the world are offering free cancellations to trips to China. See Also: <a href="https://www.businessinsider.in/business/news/air-india-may-opt-for-a-bsnl-like-voluntary-retirement-scheme-to-shed-employee-cost-along-with-debt/articleshow/73692818.cms?src=hp_wh">Air India may opt for a BSNL-like voluntary retirement scheme to shed employee cost along with debt</a>

Coronavirus takes the wind out of IndiGo – shares tumble despite a 200% jump in profits

Fresh clarifications have been sought from <keyword id="6354706" type="CITY" weightage="100" keywordseo="Indigo">IndiGo</keyword> on its proposed Rs 2500 crore initial public offer (IPO) by the capital market regulator <keyword id="35210" type="ORGANIZATION" weightage="100" keywordseo="sebi">SEBI</keyword>. 

	Without disclosing the details of clarifications sought, the Securities and Exchange Board of India (Sebi) has said it is awaiting response from lead manager for the proposed public offer. 
 

	According to the latest weekly update on the processing status of draft offer documents filed with Sebi, the market regulator has said clarifications are awaited on IndiGo's IPO as of July 31, 2015. 
 

	The next update will be uploaded on Sebi's website on August 10. 
 

	The market watchdog said it might issue observations on draft offer document within 30 days after receiving a satisfactory reply from the lead merchant banker regarding the clarification or additional information sought from it. 
 

	Sebi had earlier this month also sought clarification from InterGlobe Aviation, which runs the country's biggest airline by market share under IndiGo brand. 
 

	The regulator received last communication from the merchant banker on July 29. Indigo had filed its draft offer document with Sebi on June 30, 2015. 
 

	As per the draft papers, the company has offered 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. 
 Citigroup, JPMorgan India, Morgan Stanley, Barclays, UBS Securities India and <keyword id="106209" type="CITY" weightage="100" keywordseo="Kotak-Mahindra-Capital-Company">Kotak Mahindra Capital Company</keyword> are managers for the share sale. 

	IndiGo is one of the two profit-making domestic airlines. The only other profitable airline is GoAir. 
 The already-listed airlines in the country include <keyword id="6358200" type="CITY" weightage="100" keywordseo="Jet-Airways">Jet Airways</keyword> and SpiceJet while trading in long-grounded <keyword id="6373962" type="CITY" weightage="100" keywordseo="Kingfisher-Airlines">Kingfisher Airlines</keyword> has been suspended for a long time due to penal reasons. Last month, Sydney-based aviation think-tank <keyword id="109712" type="ORGANIZATION" weightage="100" keywordseo="Centre-for-Asia-Pacific-Aviation">Centre for Asia Pacific Aviation</keyword> (CAPA) had said IndiGo is estimated to have recorded a profit of USD 150-175 million in 2014-15. 

	The low-cost model using a single type of narrow-body planes is one of the contributing factors for IndiGo's profitability. 
 

	IndiGo was founded in 2006 by travel entrepreneur Rahul Bhatia and US Airways former chief executive Rakesh Gangwal.

	 
	 
	(Image credits: Indiatimes)

IndiGo’s Rs. 2,500 crore IPO comes under the scanner of SEBI

<ul><li>The low-cost airline's profit hits a new record as jet fuel prices fall and competition decreases.</li><li>IndiGo's management said that the company managed to reduce its cost of fuel by 11%, even though the actual fall in aviation turbine fuel was much lesser.</li><li>IndiGo's Chief Executive Officer Ronojoy Dutta dismissed any significant benefit from the disappearance of Jet Airways from Indian skies.</li></ul> InterGlobe Aviation Ltd-owned India's biggest airline by market share, IndiGo, on Friday posted its highest ever quarterly net profit at ₹1,203 crore for the first-quarter of 2019-20. "Strong passenger revenues along with a sharp improvement in cargo performance were key drivers to this improved profitability. We are particularly pleased with this quarter because it demonstrated our ability to grow rapidly while simultaneously expanding our margin performance," the company's CEO, Ronojoy Dutta said. In a conference call with analysts, the management highlighted that its efforts in managing its fleet and routes led to a fall in fuel cost of 11% during the quarter whereas the actual fall in jet fuel was much lesser. "Going forward, obviously, this quarter the aircraft utilisation was a little lower due to some temporary issues. As that improves there will be some tailwinds in terms of fixed costs," Rohit Philip, the chief financial officer of IndiGo said. Sales jumped 42% to ₹9,420 crore and market share has steadily risen since rival Jet Airways went bankrupt and stopped flying. This has helped all airlines charge higher airfares while costs came down, helping their profits. However, Chief Executive Officer Ronojoy Dutta dismissed any significant benefit from the disappearnce of Jet Airways on the company's performance. IndiGo only got 35 slots vacated by Jet in the Mumbai airport and that's a small portion of the total 1400 slots IndiGo has. For fiscal year 2020, year over year capacity increase in available seat per kilometre is expected to be 30%, the company said in a presentation. SEE ALSO: <a href="https://www.businessinsider.in/indigos-share-price-crashed-10-7-to-1397-on-wednesdays-closing/articleshow/70158806.cms" data-type="tilCustomLink" target="_blank">IndiGo’s shares crash to a new low after a promoter alleges the other of governance violations</a>

IndiGo airline's profit hits a new record as jet fuel prices fall and ticket prices spike

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>NEW DELHI/PARIS (Reuters) - Almost four years ago a handful of people gathered in Airbus sales chief John Leahy's spacious country house outside Toulouse and argued long into the evening over curry and cigars.
Last weekend they met up again at a Parisian hotel for more haggling, with breaks taken at a nearby cafe where the informality of old business friendships mingled with hard-nosed negotiations typical of the aircraft industry.
The sum total of money discussed over these meals? About $40 billion at catalogue prices, and the bill was for 430 jets, all sold to the same Indian airline -- IndiGo, the low-cost carrier which has grown to become the country's biggest airline in eight years of operating.
Represented according to insiders by co-founder Rakesh Gangwal and President Aditya Ghosh, IndiGo has now made aircraft industry history twice in four years -- each time by placing record orders for Airbus planes, including last Wednesday's announcement that it will buy 250 A320neo jets.
The largest order in India's aviation history is IndiGo's most aggressive bet yet that Indian air travel is on the cusp of a huge expansion, and that the model that made it the nation's only profitable carrier will keep working as competition intensifies.
"IndiGo is showing us the level of confidence it has in its own sustainability, in the long-term growth of aviation and in the future performance of the Indian economy," said Harsh Vardhan, chairman at Delhi-based Starair Consulting.
Airline industry executives are hoping India's weak economy will rebound under new Prime Minister Narendra Modi and that the government will press for cuts to jet fuel tax and build more airports, slashing costs and opening up new markets.
Higher disposable incomes, an expanding middle class and rapid urbanization have made India one of the world's fastest-growing domestic aviation markets, where passenger numbers are expected to grow by more than 75 percent in the next six years to exceed 217 million.
According to Airbus executive vice-president and the president of its India operations Kiran Rao, optimism about growth in Indian aircraft demand is rising.
But few airlines have translated that optimism into new orders on the scale of IndiGo's since most are losing money.
"People are too focused on India's negatives. IndiGo is aware of the challenges and it is adept at steering itself around them. That is how it became India's largest carrier," said one source familiar with the airline's thinking.
"There is, however, a great deal of optimism about the future within the airline and that comes right from the top."
Ghosh told Reuters last week India was a "highly underpenetrated market" and that a lot of the new planes would be for growth rather than replacing older aircraft.
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<h3>STAYING IN PROFIT</h3>
Despite more Indians flying, fierce competition and high costs have left airlines including SpiceJet, Jet Airways and state-run Air India losing cash fast. The sector will lose up to $1.4 billion more this financial year, according to consultancy CAPA.
Privately held, IndiGo does not disclose its full accounts but is the only major Indian carrier which says it is profitable. It reported a sixfold rise in net profit to 7.87 billion rupees ($128 million) in the 2012-13 financial year, and has since expanded its market share to about 32 percent.
Founded in 2006 by travel entrepreneur Rahul Bhatia and Gangwal, a former chief executive of U.S. Airways and an old hand in executing game-changing aircraft orders, IndiGo has relied almost entirely on the sale and leaseback model to fuel its growth.
IndiGo buys a single line of planes in bulk at discounts, and then sells them to leasing companies around the time they are delivered, leasing the planes back and retiring the aircraft within six years to avoid depreciation and maintenance costs.
This keeps capital costs low and its balance sheet light, and is a strategy some analysts say hands it up-front cash to meet operating costs and tips it into profitability as rivals succumb to losses.
"IndiGo is also a good customer and in a good cash flow position, which means that there is little chance of default. In India IndiGo is probably the best customer for lessors," said one person familiar with the leasing negotiations.
IndiGo denies that the sale and leaseback model is the reason it makes money, and instead points to an advertising budget which is less than 1 percent of revenues, the fast turnaround of its fleet and its high level of seat sales as a proportion of capacity compared with its rivals.
The airline says it will also stick to the standard low-cost operator's strategy of flying a single type of narrow body plane within India and to a handful of overseas destinations. 
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<h3>COMPETITION AND AMBITION</h3>
IndiGo's ascent is not without its risks, however.
An end to the era of cheap borrowing to finance its plane orders would raise its costs, and should India's fragile economic recovery wilt IndiGo would be left facing delivery of 250 Airbus planes from 2018 that it would struggle to fill.
Increased competition in a notoriously cut-throat Indian market plagued by overcapacity could throw up the biggest hurdle to IndiGo's ambitions, analysts say.
Once-profitable airlines like Jet, which went from market leader in the 1990s to today's sprawling <keyword id="6356001" type="COMPANY" weightage="60" keywordseo="international">international</keyword> carrier, have turned loss-making in the last two years as fares fell faster than they could cut costs.
Meanwhile Malaysia-based budget carrier AirAsia launched its first Indian flight in June, bringing in an airline which manages to operate with one of the lowest unit costs per kilometer flown in the industry. AirAsia India did not respond to requests for comment on IndiGo.
"The biggest risk for IndiGo is how the competition behaves, whether AirAsia and others respond more aggressively now," said Starair's Vardhan.
(1 US dollar = 61.6200 Indian rupees)
(The story is refiled to fix spelling of additional reporter credit)
(With additional reporting by Siva Govindasamy in Singapore; Editing by Greg Mahlich)

Inside The $40 Billion Jet Buying Spree By India's Biggest Airline

<ul><li>Indigo Paints shares are down nearly 17% in just 3 days despite the ecstatic mood in the market where Sensex broke new records.</li><li>The excitement around Indigo Paints also fizzled soon after the listing, just like in the case of Mrs’ Bector’s Food and Burger King.</li><li>Analysts say it is better to sell half the <keyword id="10589233" type="UNKNOWN" weightage="20" keywordseo="indigo-paints-stocks">Indigo Paints stocks</keyword> for profit booking, and hold the rest hoping for a surprise.</li><li>Check out the latest news and updates on <a href="https://www.businessinsider.in/">Business Insider</a>.</li></ul>The Indian stock market has been enjoying the dream run — Sensex topped 51,000-mark this morning, and Nifty inched closer to 15,000. But the Indigo Paints investors who didn’t sell their stock on listing day, or ones who bought it on that day, have seen their investment fall nearly 17% in just 3 days. The excitement around Indigo Paints also fizzled soon after the listing, just like in the case of Mrs’ Bector’s Food and Burger King. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Post listing peak </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Current price </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fall from peak </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indigo Paints </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3232 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2693 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mrs Bectors </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹624 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹415 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> Burger King India </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹194 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹147 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">19% </td></tr></tbody></table>* NSE data- as of February 5 Samir Arora, the founder and fund manager at Helios Capital, in <a href="https://www.businessinsider.in/stock-market/news/interview-a-hedge-fund-manager-explains-where-to-invest-when-nothing-is-cheap-in-india/articleshow/80682629.cms">an exclusive chat with Business Insider</a>, said that all three stocks are “still overvalued”, and by a lot, compared to their listed peers like Asian Paints, Britannia and Jubilant Foodworks respectively. Business Insider reached out to a few more analysts and the verdict is similar. Keshav Lahoti, Equity Analyst, Angel Broking, said it is better to sell half the Indigo Paints stocks for profit booking, and hold back on the rest for any surprise movement. IPO: Initial Public Offering or Instant Profit Opportunity? Just like Burger King and Mrs Bector's Food, the <keyword id="10263001" type="UNKNOWN" weightage="20" keywordseo="indigo-paints-ipo">Indigo Paints IPO</keyword> was a hit. The IPO of India's fifth-largest paint maker clocked in a massive response from investors on the last day of subscription — the issue was subscribed 117 times the offer value. Indigo Paints is also the most subscribed IPO of 2021 followed by Home First Finance which was subscribed only 27 times. “See what happens is that when an IPO happens there are hundreds listed companies in the market, but the full attention of the retail, public and even institutional public goes towards the IPO. In fact, that's why in the US people take those companies private. That way every year they take 10 companies private and eight of them come back after not five years even in one or two years. It is because there is this concept that an IPO is a good way,” said Arora If you want to profit from Indigo, wait! Kranthi Bathini, equity strategist at Mumbai-based WealthMills Securities, expects “some more profit booking in the next few days." According to Lahoti, the company has a strong business model, experienced management and has done a great job gaining the market share in the industry from the last few years. "But currently the stock is a bit over valued," he told Business Insider. According to both the analysts, it is not the "right time" to enter into the stocks at these valuations. It is better to wait for a correction if someone wants to take a position. "I can say if the stock corrects 20-30% more from here, then investors can start buying it. If you have it in your portfolio you book profit in half of the stock and half they should wait," Lahoti said. Angel Broking says Mrs Bector's stock is ‘reasonably’ valued now Mrs Bector's shares opened in the green today but investors' anxiety over the upcoming earnings pushed the stock back into the red soon after. According to Lahoti, the stock has corrected nearly 30% and is now available at a reasonable valuation. "Mrs. Bector Food Specialities are one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India. We think the company should be able to grow in line with the industry managed by the promoters having more than 25 years of sector knowledge. We advise investors to buy Mrs Bectors," he said. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-governor-shaktikanta-das-says-inflation-will-be-maximum-6-percent/slidelist/80700549.cms">Reserve Bank of India says inflation will remain under 5.2 percent until March</a> <a href="https://www.businessinsider.in/tech/news/paypal-to-focus-on-indian-businesses-wanting-to[%E2%80%A6]nds-down-operations-from-april-1/articleshow/80699809.cms">PayPal to focus on Indian businesses wanting to go global as it winds down operations from April 1</a>

Indigo Paints joins the league of Burger King and Bector's — frenzied IPOs that fizzled out

Three companies - low-cost carrier <keyword id="6354706" type="CITY" weightage="80" keywordseo="Indigo">IndiGo</keyword>, staffing firm <keyword id="133742" type="COMPANY" weightage="80" keywordseo="TeamLease">Teamlease</keyword> and e-retailer Infibeam - have lined up for public offers to generate around more than Rs 3,000 crore from investors, reported PTI. According to banking sources, the draft papers for all the three Initial Public Offers (IPOs) were being submitted to capital markets regulator Securities and Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="80" keywordseo="sebi">SEBI</keyword>) today. <keyword id="300127" type="COMPANY" weightage="80" keywordseo="Interglobe-Enterprises">InterGlobe Enterprises</keyword>, which runs the country's biggest airline by market share under 'IndiGo' brand, wants to raise Rs 2,000-2,500 crore through the <keyword id="6354763" type="EVENT" weightage="80" keywordseo="IPO">IPO</keyword>, sources said, adding Teamlease is looking to raise Rs 450-500 crore and Infibeam about Rs 400 crore. 

	IndiGo flew 27.69 lakh passengers in May, accounting for more than a third of the total traffic. Last month, all Indian carriers together ferried a total of 71.27 lakh passengers. 
 

	The privately-held IndiGo is one of the two domestic carriers making profit. The other profitable airline is GoAir. 
 Earlier this month, Sydney-based aviation think-tank '<keyword id="109712" type="ORGANIZATION" weightage="80" keywordseo="Centre-for-Asia-Pacific-Aviation">Centre for Asia Pacific Aviation</keyword>' (CAPA) said IndiGo is estimated to have recorded a profit of $150-175 million in fiscal 2015. 

	IndiGo was founded in 2006 by travel entrepreneur Rahul Bhatia and US Airways former chief executive Rakesh Gangwal. 
 After a prolonged lull, the IPO space has become very active and over 30 companies have lined to raise funds totaling over Rs 20,000 crore through public offers, which also include Cafe Coffee Day, Matrix Cellular and <keyword id="470455" type="ORGANIZATION" weightage="80" keywordseo="GVK-Airport">GVK Airport</keyword>. 

	At least 20 of these firms have already got the go-ahead from SEBI to launch their respective IPOs while draft IPO papers of five firms are currently "under process" but may be cleared soon. 
 Three companies -- Cafe Coffee Day, Matrix Cellular and <keyword id="2179992" type="UNKNOWN" weightage="80" keywordseo="RBL-Bank">RBL Bank</keyword> -- approached the regulator last week and they are now being followed by the likes of IndiGo, Infibeam and Teamlease. The flurry of activity in the IPO space follows stabilising trends in the <keyword id="35199" type="UNKNOWN" weightage="60" keywordseo="stock-markets">stock markets</keyword> and the companies are looking to raise funds to finance their business expansion and loan repayments and meet working capital requirements. 

	It also comes at a time when the regulator SEBI has announced a slew of fresh reforms in the IPO space, including for halving the listing period to six days and making the application process for investors entirely cheque-free. 
	 
	(Image: Indiatimes)

IndiGo, Infibeam, Teamlease want to generate over Rs 3,000 crore via IPOs

<ul><li>IndiGo, Spicejet, and GoAir are making the most out of the grounding of Jet Airways.</li><li>Reduced competition allows the airlines to charge high fares despite fewer passengers.</li><li>Stock market investors lapping up shares of IndiGo and SpiceJet.</li></ul>The Indian airline sector is controlled by three 'low-cost' airlines-- IndiGo, SpiceJet, and GoAir. The three companies are expected to post record profits in the year ending March 2020, according to a latest report, despite falling passenger traffic. The irony has been brought to life by the scorching airfares. The Centre for Asia Pacific Aviation (CAPA) has estimated an annual profit of $400 million-500 million for IndiGo alone-- that is more than the profits last year for all three airlines put together. Within 12 months, SpiceJet's domestic market share could approach 25%, CAPA reportedly said. SpiceJet currently has 13% market share as much as the state-owned Air India, while IndiGo already controls half the market, leaving the rest for GoAir, Vistara, and Air Asia. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 For instance, in the case of IndiGo, the average fare person grew 12% in the fourth quarter of 2019 whereas the number of seats occupied per flight fell 3%, compared to the same period a year earlier. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 These low-cost airlines have benefited from the disappearance of Jet Airways flights from the skies. Once the full-service carrier got grounded, the likes of IndiGo, SpiceJet, and GoAir were quick to raise airfares so high that the number of passengers opting for flights came down. 
 
 
 
 
 
 
 
 
 
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 This has also led to spectacular rise in the stock prices of the listed airlines as investors look for a share in the quick buck made by other airlines after Jet spiralled to the ground. Today, India's low-cost airlines are more valuable than all their global peers. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 The mad buying rush in airline stocks has led a global investment bank to issue a warning. HSBC has said that the consensus earnings forecast have risen too much ignoring some of the other industry risks. Everyone, except the government and the competition regulator, seems to have taken note of the market distortion. SEE ALSO: <a href="https://www.businessinsider.in/boeing-and-jet-airways-crisis-has-helped-indigo-lufthansa-and-singapore-airlines-but-hurt-indian-airline-traffic/articleshow/69001574.cms" data-type="tilCustomLink" target="_blank">The crises at Boeing and Jet Airways has brought India's air traffic growth to a grinding halt</a>

Indian airlines have more empty seats these days but their profits are soaring like never before-- and no one seems to care

Despite low crude oil prices, some of the airlines in India are still bearing rough weather. As per a report by aviation consultancy Capa India, Indian airlines have lost more than $10 billion since 2009 while their debt stands at around $11.3 billion. 
 
But, IndiGo, which has 40% share of the Indian aviation market, remains unaffected and is managing its business with aplomb. 
 
Here are few reasons for how the budget airline is prospering in tough times. 
 1. <keyword id="2399048" type="UNKNOWN" weightage="20" keywordseo="IndiGo-IPO">IndiGO IPO</keyword>: When IndiGo’s operator <keyword id="300127" type="COMPANY" weightage="20" keywordseo="Interglobe-Enterprises">InterGlobe Enterprises</keyword> announced their plans for an IPO and set prices between Rs 700 and Rs 765 a share, many though the prices were too high. But, IndiGO IPO subscribed more than six times and made a stunning debut on the market, gaining early 18% on listing. IndiGo is now valued at around $6 billion. 
 
2. Keeping it simple: Despite complex aviation regulations, creaking airports, rising airport fees, exorbitant taxes, etc, IndiGo has stuck to one formula-keep it simple. "We focus only on getting customers from point A to B safely along with their bags and serve food that will not make them sick," IndiGo president Aditya Ghosh had said. IndiGo flies only the Airbus320s, which helps keep operations simple and costs low. 
 
3. Negotiations: Through repeated orders of Airbus 320, (100 planes in 2005, 180 in 2011 and 250 planes in October) have given IndiGo an edge to bargain hard. IndiGo then sells and leases back the planes, cushioning its balance sheet from the uncertainties of aviation and helping it retain a young fleet. 
 
(Image: Indiatimes)

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