The reduction came on the first day of the roadshow for the much-awaited IPO, which is being seen as a test case for the revival of big-ticket share sales in the primary market.
The promoters of the company, which is among the few profitable airlines in the country, will now sell nearly 23 million shares, down from about 26.1 million they had earlier proposed for the Offer For Sale component of the IPO.
The decision was taken hours after the company management began the IPO roadshow in Mumbai this morning, where it was announced that the public issue would be a fresh issue aggregating up to Rs 1,272.2 crore and offer for sale of up to 26,112,000 shares.
The OFS component was proposed to comprise of 3,290,419 shares by InterGlobe Enterprises, 3,006,000 shares by Rahul Bhatia; 3,759,638 shares by Rakesh Gangwal and 2,227,316 shares by Shobha Gangwal, among others.
Sources said that the Gangwal family has decided to reduce the number of shares to be offered by them for sale, resulting in lowering of the total OFS component to about 23 million equity shares.
This would bring down the IPO size, where the price band has been fixed at Rs 700-765 a piece, to about Rs 3,000 crore from Rs 3,268 crore estimated earlier, sources added.
InterGlobe Aviation is the holding company of IndiGo airline. The company said it will retire Rs 1,166 crore out of its Rs 3,912-crore debt from the IPO proceeds.


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