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IndiGo plans to raise USD 400 mn by selling 10 per cent stake via IPO

According to a report by Anirban Chowdhury for The Economic Times, IndiGo is planning a stock sale that may value the airline at USD four billion—almost eight times the market valuation of its largest listed rival. IndiGo is preparing to file documents for an Initial Public Offering (IPO) within the next 60 days, aiming to raise USD 400 million by selling a ten per cent stake, said a person familiar with the matter. That would give the airline promoted by Rahul Bhatia’s InterGlobe Enterprises and aviation industry veteran Rakesh Gangwal a valuation of Rs 25,200 crore. This valuation is higher than what some industry officials expected.

Aditya Ghosh, President, IndiGo, declined to comment on the company’s IPO plans. Although there has been talk of an IndiGo IPO since the middle of last year, the airline has been looking to get its timing “just right”, the person said, without elaborating. The company will file a comprehensive IPO proposal known as a red herring prospectus with the Securities & Exchange Board of India (SEBI), the capital markets regulator. SEBI usually takes six to eight months to approve such documents, which means IndiGo’s IPO may possibly be pushed to next year. (Source: The Economic Times)