InterGlobe Aviation to raise Rs 2,530 cr by selling shares to institutions

InterGlobe Aviation, the company that operates the country’s largest airline Indigo said the company would raise Rs 2,530 cr by issuing fresh shares.

At the same time, existing shareholders of the company would raise Rs 1,265 cr by selling some of their shares as well, the company said.

The total size of the offering would be around 3,780 cr. The shares would be sold to institutional investors.

A total of 33.58 mln shares would be sold at a price of Rs 1,130 each. Two thirds of the shares are fresh issue, while one third will come from existing shareholders.

It is not clear who the selling shareholders are.

Indigo is considered a model airline due to its enormous success in both growing its revenue as well as remaining profitable even during periods of poor growth in the airline industry.

It is also the largest individual Asian low-cost carrier in terms of jet fleet size and passengers carried, and the eighth largest carrier in Asia with over 41 million passengers carried in 2016.

The airline operates to 46 destinations both domestic and international. It has its primary hub at Indira Gandhi International Airport, Delhi.

It was founded by Rahul Bhatia of InterGlobe Enterprises and Rakesh Gangwal, a United States-based expatriate Indian; in 2006.

It took delivery of its first aircraft in July 2006 and commenced operations a month later. The airline became the largest Indian carrier in passenger market share in 2012. The company went public in November 2015.