Indigo may file papers for Rs 2,500-cr IPO next week

Leading airline IndiGo is likely to soon approach market regulator Sebi with its IPO plan to raise an estimated Rs 2,500 crore.

InterGlobe Enterprises, which runs the country's biggest airline by market share, under 'IndiGo' brand, is currently in the process of finalising its draft red herring prospectus for the public offer and may submit the same to Sebi as early as next week, sources said.

An IndiGo spokesperson could not be immediately contacted for comments.

Continuing its market dominance, 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 'Centre for Asia Pacific Aviation' (CAPA) said IndiGo is estimated to have recorded a profit of $150-175 million in fiscal 2015.

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.