IndiGo files prospectus for IPO

Budget passenger carrier IndiGo on Tuesday filed the prospectus for a proposed initial public offering (IPO) which intends to raise Rs.1,272.2 crore.

An IPO is a financial instrument through which an unlisted company offers a particular percent of its total shares to the public for the first time.

The funds raised through the process are utilised for various purposes like working capital, debt repayment, and acquisitions.

According to the airline, its operating InterGlobe Aviation filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) in relation to a proposed IPO.

The DRHP contains most of the key information pertaining to the company's operations and its intent to go public.

"The issue will consist of a fresh issue aggregating up to Rs.12,722 million and an offer for sale of up to 30,146,000 equity shares by certain selling shareholders of the company," the airline said in a statement.

"The equity shares offered through the issue are proposed to be listed on the BSE (Bombay Stock Exchange) and the National Stock Exchange of India," the statement said.

The airline added that the global co-ordinators and book running lead managers (GCBRLMs) to the issue are Citigroup Global Markets India, J.P. Morgan India and Morgan Stanley India.

The Book Running-Lead Managers (BRLMs) to the issue are Barclays Bank, Kotak Mahindra Capital Company and UBS Securities India.

IndiGo is India's largest airline by market share. It had a market share of 38.9 percent in May, 2015.