The Rs 3,018-crore initial public offer of IndiGo’s parent InterGlobe Aviation was subscribed 33 per cent till noon on the first day of the issue on Tuesday. The much-awaited IPO had received bids for 99,26,190 shares against the total issue size of 3,01,22,088 shares, data available with the NSE till 12:00 noon showed.
The portion reserved for qualified institutional buyers (QIB) was over-subscribed 1.14 times, sources said. However, retail and high net worth individual (HNI) category saw slow demand. InterGlobe Aviation has already raised Rs 832 crore from anchor investors by allotting shares at the upper price band of Rs 765 apiece.
InterGlobe hit the capital markets to raise Rs 3,018 crore through the initial public offering, the biggest in nearly three years. The price band for the offer has been fixed at Rs 700-765 per share. The company had reduced its initial share sale size to a little over Rs 3,000 crore last week, with three of the promoters deciding to sell less number of shares than proposed earlier.
The offer comprises fresh issue of shares worth Rs 1,272.2 crore and the revised Offer for Sale (OFS) size that would be about Rs 1,746 crore. Together, the share sale can rake in up to Rs 3,018.2 crore. The IPO would conclude on October 29.
Barclays Bank PLC, Kotak Mahindra Capital Company Limited and UBS Securities India are managing the issue. IndiGo has a fleet of 98 aircraft and about 75 of them are on operating lease – a business model which has helped it lower costs.
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