Interglobe Aviation Ltd, which runs India’s largest and most profitable airline Indigo, had a blockbuster debut on the stock markets on Tuesday. The company’s share price, which were sold at Rs 765 apiece in its initial public offer (IPO), soared to as high as Rs 898, up 17.3 per cent. It closed the day at Rs 878.4, up 14.82 per cent.
The Rs 3,010 crore share sale of Indigo had garned a lot of interest among investors as it was the first airline to list in several years in on of the fastest growing aviation markets in the world. Domestic air passenger traffic data showed more than 20 per cent year-on-year growth during January-September owing to more flights, fare cuts and faster economic growth, according to the International Air Travel Association.
The Indigo issue, which had closed on 29 October, was subscribed 6.14 times. Although retail investors were initially cool towards the offer, interest picked up and 90 per cent of the portion set aside for this class of investors was susbscribed. The high networth portion was subscribed 3.57 times and qualified institutional buyers 17.8 times.