Interglobe Aviation Ltd, the holding company of Indigo Airlines is expected to launch it’s IPO in the last week of November 2015. Some investment bankers believe the IPO might open on 26th November and close on the 28th. These dates are tentative and may be changed depending on market conditions.Indigo was incorporated in January 13, 2004 in Lucknow and currently it’s registered office is in Delhi. In the Draft Red Herring Prospectus filed with SEBI the company has listed Mr Rahul Bhatia, Mr Rakesh Gangwal, Acquire Services Pvt Ltd and Interglobe Enterprises Pvt Ltd as it’s promoters.
Indigo Airlines IPO Review
- Indigo Airtlines is expected to raise upto Rs 2500 Crore from it’s initial public offering (IPO) from public and institutional investors. Given below are some interesting facts about Indigo Airlines that most investors would love to know :
- Indigo is the second largest airline carrier in India by the “Number of Passengers” metric. It is second to only Jet Airways.
- Indigo has a share of 35% in the market for domestic passengers as of August 2015.
- Indigo Airlines is the only profitable airline in India and has been reporting profits consistently since 2009.
- The secret to Indigo’s profitability when other airlines are bleeding is it’s low maintenance costs of 3% while other airlines have costs ranging from 8-12%. This has helped the airline achieve the distinction of being the only profitable airline in India’s skys.
- Indigo’s low maintenance costs are a result of it sticking to just one single model of aircraft. Indigo only operates the Airbus A320!
- The company operates more than 600 domestic flights and in 2014 launched it’s first International flight.
- Indigo reported a record profit of Rs 1304 Crore for FY2014-15 which is 300% jump over the previous financial year when it reported Rs 317 Crore.
- On 15th August 2015, the Airline placed an order worth US$ 26.5 billion for Airbus Aircraft which is considered to be the largest order till date in the airline industry.
- Some of the Indigo Airline Hostesses wear wigs ! Do check them out when you travel by Indigo next time !
Indigo IPO Prospectus
Indigo filed it’s prospectus with SEBI in the month of June 2015. This prospectus can be downloaded at the link below : indgo-airlines-prospectus.pdf