The operator of the profitable no-frills carrier IndiGo has set a price band for the public offer at Rs 700-765.
IndiGo's parent InterGlobe Aviation 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.
With three promoters -- Rakesh Gangwal, Shobha Gangwal and Chinkerpoo Family Trust -- deciding to offload less number of shares in the company, the IPO size has come down to Rs 3,018 crore.
On the basis of earlier proposal, the initial share sale could have fetched up to Rs 3,268 crore. These figures are based on the upper price band of Rs 765 apiece. The IPO would conclude on October 29.
Barclays Bank PLC, Kotak Mahindra Capital Company Limited and UBS Securities India will manage the issue. Currently, IndiGo has a fleet of 98 aircraft and about 75 of them are on operating lease -- a business model which has helped the carrier lower costs.



Latest News  from Business News Desk