IndiGo IPO to open on Oct 27

InterGlobe Aviation, which runs no-frills carrier IndiGo, today said its IPO will open on October 27 and close on October 29.
The much-awaited IPO of IndiGo is being seen as a test case for revival of the primary market, as the relatively smaller public issue of Coffee Day Enterprises managed to sail through today despite a lukewarm initial response.
While InterGlobe is yet to announce price band, its Red Herring Prospectus released today said the public offer will open on October 27 and continue till October 29.
Earlier, it was estimated to be targetting funds to the tune of Rs 2,500 crore but bankers said the company may be now looking at proceeds totalling over Rs 3,000 crore from the initial share sale.

This would be a tough task as total demand generated by the Coffee Day Enterprises' IPO was about Rs 2,000 crore after taking into account the over-subscription of 1.81 times.
There was no reply from IndiGo about the price band and other details of IPO and whether it was getting jittery after initial lukewarm response to Coffee Day Enterprises share sale.

The company will allocate shares to anchor investors on October 26.
Under the offer, the company plans to issue fresh shares worth Rs 1,272 crore. Further sale of up to 3.01 crore shares by its existing shareholders has also been proposed.

The RHP was filed today after approval from the Registrar of Companies.
Last month, InterGlobe Aviation received approval from the Securities and Exchange Board of India (Sebi) for the IPO. The preliminary papers for the share sale were filed in June this year.
InterGlobe Aviation runs the country's biggest airline by market share under the IndiGo brand.
IndiGo is one of the two profit-making domestic airlines. The only other profitable airline is GoAir.
The budget carrier saw its net profit jumping over four-fold to Rs 1,304 crore in the last fiscal as it remained profitable for seven straight years.
This was also the highest ever annual profit registered by the airline since its inception in 2005.

It had posted a net profit of Rs 317 crore in the year ended March 31, 2014.
IndiGo's good showing in the last financial year was mainly on account of higher revenues despite the domestic aviation sector witnessing turbulent times that adversely impacted the balance sheets of most local carriers.
The carrier witnessed its revenues climbing to Rs 14,320 crore in the 2014-15 financial year. This is an increase of 25 per cent from Rs 11,447 crore revenues recorded in the fiscal ended March 31, 2014.
At present, listed domestic airlines include Jet Airways and SpiceJet while trading in long-grounded Kingfisher Airlines has been suspended for a long time.