Premium take off for Indigo scrip

Like the water salute accorded to an airline's plane that touches an airport for the first time, InterGlobe Aviation Ltd's shares were given a big welcome on the bourses on the first day of its listing.

Alternatively, it could also be said the company's scrip took off smoothly on the first day of its listing.

The scrip on Tuesday opened at Rs.856 and touched a high of Rs.898 and a low of Rs.848.10 against an initial public offer (IPO) price of Rs.765.

The InterGlobe Aviation scrip closed at Rs.878.45.

The company operates the Indigo brand airlines and raised Rs.3,018 crore from public through a premium issue recently.

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

Amongst the flying public the airlines has built a reputation of flying on time.

The company has also kept its debt and costs low.

Budget passenger carrier IndiGo posted its seventh straight year of profit in the last fiscal with an exponential growth of over 300 percent to Rs.1,304 crore.

According to a regulatory submission made by the low cost carrier (LCC) to aviation regulator Directorate General of Civil Aviation (DGCA), its net profit for the fiscal under review grew by 311.35 percent to Rs.1,304 crore from Rs.317 crore in 2013-14.

As per the financial submission, the profit before tax stood at Rs.1,847 crore.

The airline's financial report which was submitted to the DGCA recently revealed that its total revenue last fiscal jumped by 25.09 percent to Rs.14,320 crore from Rs.11,447 crore.

Net margin for the fiscal under review grew by 9.4 percent.