Sebi seeks fresh clarifications on IndiGo's Rs 2,500 cr IPO

New Delhi: Capital market regulator Sebi has sought fresh clarifications from budget carrier IndiGo on its proposed Rs 2,500 crore initial public offer (IPO).[caption id=“attachment_2320886” align=“alignleft” width=“380”]  On IPO tarmac. Reuters[/caption] Without disclosing the details of clarifications sought, the Securities and Exchange Board of India (Sebi) has said it’s awaiting response from lead manager for the proposed public offer. According to the latest weekly update on the processing status of draft offer documents filed with Sebi, the market regulator has said clarifications are awaited on IndiGo’s IPO as of 31 July 2015. The next update will be uploaded on Sebi’s website on 10 August. The market watchdog said it might issue observations on draft offer document within 30 days after receiving a satisfactory reply from the lead merchant banker regarding the clarification or additional information sought from it. Sebi had earlier this month also sought clarification from InterGlobe Aviation, which runs the country’s biggest airline by market share under IndiGo brand. The regulator received last communication from the merchant banker on 29 July. Indigo had filed its draft offer document with Sebi on 30 June 2015. As per the draft papers, the company 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. Citigroup, JPMorgan India, Morgan Stanley, Barclays, UBS Securities India and Kotak Mahindra Capital Company are managers for the share sale. IndiGo is one of the two profit-making domestic airlines. The already-listed airlines in the country include Jet Airways and SpiceJet while trading in long-grounded Kingfisher Airlines has been suspended for a long time due to penal reasons. Last month, Sydney-based aviation think-tank Centre for Asia Pacific Aviation (CAPA) had said IndiGo is estimated to have recorded a profit of $150-175 million in 2014-15. The low-cost model using a single type of narrow-body planes is one of the contributing factors for IndiGo’s profitability. IndiGo was founded in 2006 by travel entrepreneur Rahul Bhatia and US Airways former chief executive Rakesh Gangwal. PTI