InterGlobe Aviation IPO flies high, over-subscribed 6.15 times

Mumbai: The Rs 3,018-crore public offer of IndiGo's parent InterGlobe Aviation, the biggest IPO in nearly three years, elicited robust response as the issue got over- subscribed 6.15 times on the last day of bidding Thursday.

The IPO generated demand worth over Rs 18,000 crore, as it received bids for 18,53,10,405 shares against the total issue size of 3,01,22,088 shares, according to data available with the NSE till 2030 hours.

The quota reserved for qualified institutional buyers (QIBs) saw tremendous response with over-subscription of 17.80 times. Non-institutional investors category was over- subscribed 3.57 times.

In contrast, the portion set aside for retail investors witnessed 92 percent subscription, while the employees category was subscribed 13 percent.

This is the biggest IPO in the Indian market since Bharti Infratel's over Rs 4,000-crore public offer in December 2012.

Ace investor Rakesh Jhunjhunwala and foreign entities, including Acacia Partners LP, which is said to be associated with legendary investor Warren Buffett, are among those who have purchased shares of the airline.

InterGlobe Aviation has raised Rs 832 crore from anchor investors by allotting shares at the upper limit of price band at Rs 765 apiece.

The offer invites subscription in the price band of Rs 700-765 per share.

The company had reduced its initial share sale size to a little over Rs 3,018 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. The IPO closed today.

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 on lease - a business model which has helped it lower costs.