IndiGo shares surge 12% from IPO price on listing

by Jonathan Adams

Shares in InterGlobe Aviation Ltd, operator of India’s biggest airline by market share, IndiGo, opened at 855.80 rupees, up 12 percent from its initial public offering price of 765 rupees in its market debut on Tuesday.

InterGlobe raised Rs 3,010 crore ($453.52 million) in a hotly anticipated IPO, which was subscribed over six times driven by strong demand from foreign institutional investors.

The equity shares have been listed on the National Stock Exchange (NSE) as well as BSE.

InterGlobe’s IPO is the biggest Indian listing since Bharti Infratel Ltd’s $750 million market debut in December 2012.

Coffee Day Enterprises, which runs Cafe Coffee Day (CCD) outlet, got listed on the exchanges on November 2. In comparison, the stock is currently trading at Rs 272.30, way below its issue price of Rs 328.

The company’s Rs 1,150-crore initial share-sale programme was the biggest in nearly three years when it hit the market, but now it has been overtaken by Indigo’s IPO.

In InterGlobe Aviation’s IPO non-institutional investors category was subscribed 3.57 times. In contrast, the portion set aside for retail investors witnessed 92 per cent subscription, while the employees category was subscribed 13 per cent.

The IPO, which opened for subscription from October 27-29, was subscribed 6.15 times at price band of Rs 700-765 a share.
InterGlobe Aviation, the parent company of IndiGo, had raised Rs 832 crore from anchor investors before its public offering.

IndiGo has a fleet of 98 aircraft and about 75 of them are on operating lease – a business model which has helped it lower costs.

Apart from Coffee Day Enterprises, shares of several companies which got listed on the exchanges this year are trading below their respective issue prices.

Those firms are Adlabs Entertainment, Monte Carlo, MEP Infrastructure Developers, UFO Moviez India, Pennar Engineered Building Systems and Power Mech Projects.

In contrast, shares of Snowman Logistics, VRL Logistics, Syngene International, Sharda Cropchem, Manpasand Beverages, Shemaroo Entertainment, PNC Infratech, Prabhat Dairy, Shree Pushkar Chemicals & Fertilisers, Inox Wind have rewarded their investors with positive returns.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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