IndiGo's IPO Attracting Strong Demand

October 28, 2015

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InterGlobe Aviation, owner of IndiGo, on Wednesday filled the order book for its up to INR30.2 billion rupees (USD$464.3 million) initial public offering, which attracted strong demand from foreign investors.

InterGlobe had received orders for 46.7 million shares as of 5 pm local time, or 1.55 times the 30.1 million shares on offer during a second day of book-building, according to data from National Stock Exchange and BSE.

The owner of IndiGo is selling the shares at between INR700 and INR765 rupees each. It will close its order book on Thursday.

The IPO, potentially the largest in India since 2012, could give the company a market value of up to USD$4 billion, bigger than rivals Jet Airways and SpiceJet.

IndiGo, India's largest airline by passenger numbers, has consistently stayed profitable for the past seven years by keeping its costs and taxes low, while building a reputation for punctuality.

Its stock market debut coincides with low prices for crude oil, one of budget airlines' biggest costs.

Foreign institutional investors were by far the most active bidders, according to exchange data, bidding for a total of 42.7 million shares, or 5 times the 8.5 million shares available for all institutional investors.

InterGlobe on Monday had already allocated 10.9 million shares to anchor investors, including Goldman Sachs, at INR765 rupees each, the top end of the IPO indicative price range, raising USD$128 million.