At Rs 878.45 on BSE
Shares of InterGlobe Aviation, the promoter of low-cost carrier IndiGo, settled at Rs 878.45 on BSE, a premium of 14.83% compared with the initial public offer price of Rs 765.
Meanwhile, the S&P BSE Sensex fell 378.14 points, or 1.45%, at 25,743.26.
The stock debuted at Rs 856 on BSE, a premium of 11.90% compared with its initial public offer (IPO) price. The stock hit a high of Rs 898 and a low of Rs 848.10 during the day. On BSE, 50.66 lakh shares were traded on the counter during the day.
The IPO of InterGlobe Aviation ended on 29 October 2015. The issue received bids for a total of 18.53 crore shares, as per data from the National Stock Exchange (NSE) website. The IPO was subscribed 6.15 times. The company allotted shares at top end of the Rs 700-765 per share price band.
InterGlobe Aviation is promoted by Mr. Rahul Bhatia, Mr. Rakesh Gangwal, InterGlobe Enterprises and Acquire Services. Promoters sold a part of their holding through the IPO.
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The company intends to use the proceeds of the fresh issue of shares primarily to retire its aircraft lease obligations. It will utilize Rs 1165.66 crore to retire some of the exiting aircraft lease obligations. The company will utilize Rs 34.25 crore for purchase of ground support equipment for its airline operations and the remaining amount for general corporate purposes.
IndiGo is India's largest passenger airline with a 33.9% and 37.4% market share of domestic passenger volume for the year ended 31 March 2015 and the five months ended 31 August 2015, respectively, according to the DGCA. IndiGo operates as a low-cost carrier or LCC business model and focuses primarily on the domestic Indian air travel market.
InterGlobe Aviation reported net profit of Rs 640.43 crore on revenue from operations of Rs 4211.54 crore in Q1 June 2015. Net profit stood at Rs 1295.58 crore on revenue from operations of Rs 13925.33 crore for the year ended 31 March 2015 (FY 2015).
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