Indigo will go for IPO, to Raise Rs 1,270 Crore

InterGlobe Aviation said in a statement the IPO would include a sale of up to Rs 1,270 crore ($199.64 million) of new shares, and the sale of up to 30.15 million of existing shares.

Those selling existing shares include travel entrepreneur Rahul Bhatia and former US Airways CEO Rakesh Gangwal, who co-founded IndiGo back in 2006, according to the draft prospectus.

Budget carrier IndiGo, which operates a fleet of 96 planes, has grown to become India’s biggest airline by market share and now carries one in three of India’s air travellers.

IndiGo’s main budget rivals include SpiceJet, GoAir and AirAsia India.

The airline specialises in placing large orders for jets and selling them on to lessors before renting them back to reduce capital costs, but it has denied that the sale-and-leaseback model is the main driver of its profits.

It made a profit of Rs 473 crore in the fiscal year to March 2014 fiscal year, compared with Rs 783 crore a year earlier.Citigroup, JPMorgan, Morgan Stanley, Barclays, UBS and Kotak Mahindra are managers for the InterGlobe share sale.