The operator of low-cost airline IndiGo is looking to raise up to $510 million in its initial public offering (IPO), betting on an improved financial outlook helped by lower oil prices and surging passenger growth.
InterGlobe Aviation Ltd, which operates the airline, has set the indicative price band for the IPO at ₹700-765 per share, according to the sources directly involved in the process. At the top end of the price band, the airline would raise as much as $510 million, making it the largest IPO in the Indian market since 2012, and giving the company a market value of about $4.2 billion.
IndiGo, whose rivals in the Indian aviation market include Jet Airways and SpiceJet, has been the only consistently profitable airline in the country for the last seven years, according to consultancy Centre for Aviation.
The IPO is set to be the biggest airline public issue in India since low-cost carrier Deccan Aviation's market debut in 2006, and will open on October 27. The company plans to use the proceeds to pay off some outstanding aircraft leasing liabilities and to expand its business.
