IndiGo, which is the top low-cost carrier (LCC) of India in terms of market share, offers international and domestic airlines tickets. More than half a dozen investment bankers will be making presentation to this LCC in Paris soon. These finance officials are competing to manage the upcoming initial public offer (IPO), which is worth around $400 million, by the no-frills airline. Initial Public Offering or IPO is a type of public offer, in which the shares of stock of a company are sold for the first time on a security exchange. Several Indian, as well as international finance institutions, is in the race for this IPO.
Operated by the InterGlobe Enterprise Ltd, this budget airline is the largest Indian LCC with a market share of more than 31 per cent as per latest data. Some of the leading bankers, pitching for the mandate are Axis Bank, JM Financial Institutional Securities Pvt. Ltd and Deutsche Bank. The Centre for Asia Pacific Aviation (CAPA) stated recently that despite the challenges in the aviation sector, there are brighter spots, such as the success of IndiGo in establishing itself as a significantly profitable carrier. It further added that the time to leverage this success had arrived.
According to experts, this IPO could be the largest-ever airline IPO in the history of Indian market. The no-frills airline could raise whopping amount of over $400 million through the sale of shares, according to aviation experts. Speculations are being made that this significant financial twist might affect the growth plans of the airline considerably. It is being expected that the carrier might place a large order of about 250 models soon. The LCC has a current fleet size of more than 75 aircraft and an awaited delivery of around 185 models. The reservations of IndiGo domestic flights have increased significantly, putting the LCC in a profitable position.
According to experts, this IPO could be the largest-ever airline IPO in the history of Indian market. The no-frills airline could raise whopping amount of over $400 million through the sale of shares, according to aviation experts. Speculations are being made that this significant financial twist might affect the growth plans of the airline considerably. It is being expected that the carrier might place a large order of about 250 models soon. The LCC has a current fleet size of more than 75 aircraft and an awaited delivery of around 185 models. The reservations of IndiGo domestic flights have increased significantly, putting the LCC in a profitable position.
No comments:
Post a Comment