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SpiceJet, Jet Airways rally after IndiGo announces IPO

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Capital Market
Last Updated : Oct 19 2015 | 5:13 PM IST

SpiceJet jumped 10% and Jet Airways (India) surged 9% at 15:18 IST on BSE on rerating of aviation sector after rival firm InterGlobe Aviation announced details of its upcoming initial public offer.

Shares of SpiceJet were locked in 10% upper circuit at Rs 47.55, also its 52-week high.

Shares of Jet Airways (India) jumped 9.13% to Rs 418.10. The stock hit a high of Rs 428.25 and a low of Rs 392 so far during the day.

Meanwhile, the S&P BSE Sensex was up 151.40 points or 0.59% at 27,374

The initial public offer (IPO) of InterGlobe Aviation, the operator of low cost passenger airline IndiGo opens for bidding on 27 October 2015. The IPO comprises of fresh issue of equity shares aggregating Rs 1272.20 crore and offer for sale of up to 2.61 crore shares by existing shareholders of the company. The price band for the IPO has been set at Rs 700 to Rs 765 per share. The IPO is scheduled to close on 29 October 2015.

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.

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As per reports, the Wadia group-promoted budget carrier GoAir is also planning to come out with its IPO this year.

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First Published: Oct 19 2015 | 3:35 PM IST

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