Indigo IPO issue subscribed by 80.5 percent on Day 1

The much-anticipated Rs.3,018 crore initial public offering (IPO) of air-carrier Indigo's parent company - InterGlobe Aviation (IGA) - was subscribed by 80.5 percent till evening on Tuesday - the first day of the three-day IPO.

According to data from the National Stock Exchange, of the 3,01,22,088 shares put up on the bourse, 2,42,41,380 shares received bids by 5 p.m.

In the qualified institutional buyers (QIB) segment, where 85,22,935 shares were reserved, bids were received numbering 2,37,62,865 of which foreign institutional investors had bid for 2,35,40,655 shares in the QIB segment.

In the non-institutional investors segment, against an offer of 58,19,746 shares, only 40,980 shares were subscribed while in the retail individual investors section, only 4,03,155 bids were received for an offering of 1,35,79,407 shares.

Bids for 22,00,000 shares reserved for employees also saw weak pick-up as 34,380 bids were submitted.

The company has, however, already raised Rs.832 crore from anchor investors after allotting shares at the upper price band of Rs.765 per share.

With a face value of Rs. 10 per share, the price band for the shares has been fixed between Rs. 700 to Rs.765.

The IPO from IGA is the biggest in nearly the past three years.

Barclays Bank PLC, Kotak Mahindra Capital Company and UBS Securities India are the managers for the issue with Citigroup Global Markets India, J.P. Morgan India and Morgan Stanley India acting as the global coordinators.

The fleet size of IndiGo comprises of 98 aircrafts of which about 75 have been taken on lease.