IndiGo sets price band at Rs 700-765 for IPO: Sources

InterGlobe Aviation, owner of the country's largest (by market share) and most profitable airline, IndiGo, has set the price band of its initial public offering of equity at Rs 700-765 a share, sources said. The sale could fetch up to Rs 3,268 crore, a valuation of Rs 25,700 crore. The share sale is expected on October 27-29. An IndiGo spokesperson did not respond to a text message seeking comment.

By the draft prospectus, the airline will offer fresh shares to raise Rs 1,272 crore. Additionally, the promoters and existing investors will sell 26 million shares in an offer for sale. The company said the IPO proceeds would be used to retire certain lease liabilities (Rs 1,166 crore) and for aircraft acquisition, purchase of ground support equipment and general corporate purposes.
 
Launched in 2006, IndiGo is co-owned by the Rahul Bhatia-promoted InterGlobe Enterprises and airline sector veteran Rakesh Gangwal. The promoters hold 93.41 per cent of the equity capital, individually and through group companies. Earlier, they held 99 per cent stake; their shareholding has reduced after conversion of certain preferential shares allotted to top current and former executives. While Bhatia owns 48 per cent in the airline, Gangwal holds 45 per cent.