IndiGo, 1 of 2 Indian airlines making profit, files for Rs 2,500 cr IPO: Key things to know

Top no-frills carrier IndiGo has filed paper for a Rs 2,500 crore from the public investors. InterGlobe Aviation, has filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (Sebi) for its proposed IPO, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations.

Here are 10 facts to know related to the development:

1) InterGlobe has offered to issue fresh shares worth Rs 1,272 crore, an equivalent amount can be raised through sale of up to 3.01 crore shares by its existing shareholders.

 IndiGo, 1 of 2 Indian airlines making profit, files for Rs 2,500 cr IPO: Key things to know

The shares will be listed on the BSE and NSE, the company said.

2) The shares will be listed on the BSE and NSE. The global coordinator and book running lead managers of the issue are Citigroup Global Markets India, JP Morgan India and Morgan Stanley India Company Pvt Ltd. The book running lead managers to the issue are Barclays Bank, Kotak Mahindra Capital Company and UBS Securities India.

3) IndiGo is one of only two airlines in India which have been declaring profits in recent years. The other profitable airline is GoAir.

4) The Centre for Asia Pacific Aviation (CAPA), a global aviation consultancy, recently pegged IndiGo's FY15 net profit at $150 million to $175 million (Rs 1,000 crore to Rs 1,100 crore).

5) The had posted Rs 317 crore net profit in 2013-14, which was nearly half of Rs 787 crore net profit it had reported the year before.

6) It currently has a fleet of 96 operational aircraft and operates 633 daily flights.

7) In May, DGCA data showed the airline is close to grabbing 40% share of the domestic market. CAPA has projected that IndiGo will account for half the domestic market by 2016.

8) IndiGo dominates the domestic market even though both Air India and Jet Airways have larger fleets. Between January and May this year, the airline flew 120.43 lakh passengers of the 322.32 lakh total passengers flown by all the domestic airlines.

9) IndiGo's has been maintaining its market leadership and profitability by keeping costs low and providing a high frequency of flights. “Low fares, on-time flights and a hassle-free experience” is what the airline claims it offers to flyers. Unlike its peers such as SpiceJet, which have twin aircraft fleet, IndiGo has only Airbus 320 aircraft and claims it has the youngest fleet with average age of aircraft at just 3.26 years.

10) IndiGo has one of the fastest aircraft turnaround times in the industry, while its manpower-aircraft ratio is among the lowest.

With inputs from PTI

Updated Date: Jul 01, 2015 14:52:36 IST