No-frills airliner Indigo's IPO is deemed to be the largest in the last three years. Here's all you need to know about it.
1) IndiGo's Rs 3,018 IPO is deemed to be the biggest in nearly three years.
2) The price band for the offer has been fixed at Rs 700 - 765 per share.
3) The offer comprises fresh issue of shares worth Rs 1,272.2 crore and the revised Offer for Sale (OFS) size that would be about Rs 1,746 crore. Together, the share sale can rake in up to Rs 3,018.2 crore.
4) IndiGo decided to bring down the initial share sale size to little over Rs 3,000 crore last week. Promoters -- Rakesh Gangwal, Shobha Gangwal and Chinkerpoo Family trust have cut the number of shares they will be selling, bringing the IPO size down to Rs 3,018.
Earlier, the IPO would have fetched up to Rs 3,268 crore based on upper price band of Rs 756 a piece.
5) The IPO will conclude on October 29.
6) The airliner is expected to retire nearly one-third of its total debt of Rs 3,912 crore from the share sale proceeds. It will retire Rs 1,166 crore from the IPO proceeds. The entire debt is related to aircraft purchases. IndiGo says that it doesn't have a single penny in working capital or non-aircraft purchase-related debt.
7) Barclays Bank Plc, Kotak mahindra Capital Company Limited and UBS Securities India will manage the issue.
8) IndiGo's parent company InterGlobe Aviation has raised Rs 832 crore from anchor investors by allotting shares at the upper price band of Rs 765 a piece. A little over 1.08 crore shares were allotted to over 40 anchor investors.
The anchor investors include, the Singapore government, Monetary Authority of Singapore, Goldman Sachs India Fund, Abu Dhabi Investment Council - Tallyfish, Indus India Fund (Mauritius) Ltd, Kuwait Investment Authority Fund 224, Credit Suisse Singapore Ltd and Sundaram Mutual Fund.
Other anchor investors are Acacia Partners LP, Fidelity Securities Fund (Fidelity Blue Chip Growth Fund), DB International (Asia) Ltd, DSP Blackrock India Tiger Fund and Columbia Emerging Markets Fund.
9) The company had earlier decided to allot 32 lakh shares to the employee reservation portion but later brought it down to 22 lakh shares. This means, the proportion of shares for retail investors, high net worth individuals and Qualified Institutional Buyers (QIBs) has increased.
10) Ghosh has said that the IPO will help improve the company's credit rating. "One it improves our credit rating as we work with many lessors in the world... Secondly, many of the earlier people have been invested in the company for around 10 years and we also can see encashment of some values and realisations," he added.
Recently, Ghosh had said, "We don't track or chase market share... load factor and market share (are something) we neither chase nor track very diligently". The company's market share was at 36.5% in September.
"... it (market share) is highly likely to up but then this is not the only the thing IndiGo is looking at," Ghosh said.
(with agency inputs)
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