IndiGo raises Rs 832 crore from anchor investors

Shares allotted to anchor investors at the top end of the price band for the IPO

InterGlobe Aviation, the operator of low cost passenger airline IndiGo, has raised Rs 832 crore by selling 1.08 crore shares to a total of 43 anchor investors ahead of the company's initial public offer (IPO). The shares will be allotted to the anchor investors at Rs 765 per share, the top end of the Rs 700-765 per share price band.

Among anchor investors, Merrill Lynch Capital Markets Espana SASV will be allocated a total of 7.92 lakh shares and Chennai 2007 CO Harward Management Co Inc will be allocated a total of 7.62 lakh shares. Government of Singapore will be allocated a total of 6.90 lakh. HDFC Top 200 Mutual Fund will be allocated a total of 5.92 lakh shares. DB International (Asia) will be allocated a total of 5.12 lakh shares.

The IPO opens for bidding today, 27 October 2015. The IPO is scheduled to close on 29 October 2015. The issue comprises of fresh issue of equity shares aggregating Rs 1272.20 crore and offer for sale of up to 2.28 crore shares by existing shareholders of the company. The price band for the IPO has been set at Rs 700 to Rs 765 per share.

InterGlobe Aviation is promoted by Mr. Rahul Bhatia, Mr. Rakesh Gangwal, InterGlobe Enterprises and Acquire Services. Promoters are selling a part of their holding through the IPO. From non-promoters, a total of 7 entities are selling shares through the IPO.

The company intends to use the proceeds of the fresh issue of shares primarily to retire its aircraft lease obligations. It will utilize Rs 1165.66 crore to retire some of the exiting aircraft lease obligations. The company will utilize Rs 34.25 crore for purchase of ground support equipment for its airline operations and the remaining amount for general corporate purposes.

IndiGo is India's largest passenger airline with a 33.9% and 37.4% market share of domestic passenger volume for the year ended 31 March 2015 and the five months ended 31 August 2015, respectively, according to the DGCA. IndiGo operates as a low-cost carrier or LCC business model and focuses primarily on the domestic Indian air travel market.

InterGlobe Aviation reported net profit of Rs 640.43 crore on revenue from operations of Rs 4211.54 crore in Q1 June 2015. Net profit stood at Rs 1295.58 crore on revenue from operations of Rs 13925.33 crore for the year ended 31 March 2015 (FY 2015).

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