Several investment banks in race for IndiGo IPO as airline looks to list by Q3

Budget carrier IndiGo is in talks with several investment bankers for its upcoming $400 million ( Rs 2,500 crore) initial public offering. According to a report in CNBC-TV18,JM Financial, Deustche Bank, Axis Capital and some global bankers are travelling to Paris this week in order to pitch for the mandate.

The airline, which is the No. 2 in terms of market share, is looking at a listing in the third quarter of the current fiscal.

Market experts believe thetiming of this IPO is appropriate considering the exuberance in the markets right now. But the bigger factor is that Indigo is the only Indian airline that's posting a profit, while all others are expected to together lose$1.4 billion in the current fiscal year, according to estimates byconsultancy firm Centre for Asia Pacific Aviation (Capa).

In the same report, CAPA said IndiGo are expected to continue to outperform the market "although very intense competition has significantly reduced its profitability and termed its result in FY14 as "below earlier expectations.

As Firstbiz reported earlier, "The IPO may be preceded by the large aircraft order, which will make a strong statement about its future growth."

Updated Date: Jul 03, 2014 10:46:04 IST