Shares of two airline companies rose by 1.78% to 3.71% at 11:15 IST on BSE after a strong response was received from investors to the initial public offering of InterGlobe Aviation, the promoter of low-cost carrier, IndiGo.
Meanwhile, the S&P BSE Sensex was up 64.44 points or 0.3 0.24% at 26,902.58.
Among airline stocks, Jet Airways (India) (up 1.78%) and SpiceJet (up 3.71%) edged higher.
The initial public offering (IPO) of InterGlobe Aviation, the promoter of low-cost carrier IndiGo, received bids for a total of 18.53 crore shares compared with 3.01 crore shares on offer. The IPO was subscribed 6.15 times. The bidding for the IPO ended yesterday, 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.
Meanwhile, revision in jet fuel prices is due in the near future. PSU OMCs review jet fuel prices on the last day of the month based on the average imported oil price for the month. Jet fuel constitutes over 40% of an airline's operating costs. Prices of jet fuel are directly linked to crude oil prices.
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