IndiGo Attracts Global Banks For Its IPO
Thursday, 3rd July 2014 at 03:45am
India has only one airline that is earning profits amidst the industry's rough rides in recent years"IndiGo.
With its remarkable operating records despite the troubles suffered by virtually all other local carriers, IndiGo managed to wiggle its way out of the mess and earn profits as well. In fact, it is the only profitable carrier in the country for most of its short history as a commercial airline.
Now that it is poised to debut in the stock market, come 2015, for its planned $400 million IPO, some of the world's giant banking institutions are reportedly scrambling for a role as a principal banker for the low-cost carrier.
IndiGo is a relatively young Indian airline which was founded only in 2006 amidst the country's already crowded market.
After 8 years in the industry, the airline is planning to go public with its $400 million IPO in the second half of next year. According to industry analysts, the planned IPO will be India's largest market debut for any Indian carrier and the biggest in the country's aviation history.
Some of the banking industry's biggest names who are reportedly keen to offer their service to IndiGo include Citigroup, Inc. Morgan Stanley, HSBC Holdings, Barclays, Deutsche Bank, Axis Capital, JM Financial, CLSA and Kotak Investment Banking.
IndiGo feels like it is in a solitary journey towards success in India's commercial aviation market without much competition. But India has a handful of other carriers, both full-service and budget airlines, who vie for ridership, right? True. However, seems like it's the only Indian airline who understands the market well.
With much prudence, it has managed to perform quite remarkably amidst sluggish travel demand and other factors that cause its rivals to accumulate losses and increasing indebtedness year after year.
IndiGo has been profitable since its inception in 2006. In such a short period, it has grown to become the country's largest airline in terms of market share overtaking Air India, the state-owned and oldest airline.
It currently operates a fleet of 79 aircraft and has an outstanding order of 186 more planes. It is planning to place an additional order of 250 more aircraft during next month's annual Farnborough Air Show in England.
IndiGo currently flies to 31 domestic and 5 international destinations.
By: Pete Lee.