Indigo IPO over-subsribed on Day 2 too

October 28, 2015

PG Staff

Kolkata, Oct 28

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]he ₹3,018 crore ($463.8 million) initial public offer (IPO) of air-carrier Indigo’s parent company InterGlobe Aviation (IGA) – the biggest in nearly three years — was over-subscribed by 1.09 times on the second day of the three-day issue. According to data from the National Stock Exchange (NSE), at around 5.25 p.m., against the 3,01,22,088 shares on offer, 3,29,75,550 bids were received.

In the afternoon trade itself, the issue got over-subscribed by 1.06 times.

On Tuesday (day one), the IPO received widespread interest, particularly in the Qualified Institutional buyers (QIB) segment as 80.5 percent of the total shares on the offer got subscribed.

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]Q[/dropcap]For the 85,22,935 shares in the QIB segment, a total of 3,18,05,895 bids were received which resulted in this segment over-subscribing the allotted shares by 3.73 times. Of the total QIB bids received, 3,06,06,390 came from foreign institutional investors. Moderate sentiments prevailed among the retail individual investors as against 1,35,79,407 shares, bids were received for 9,56,535 shares on the bourse.

However, like on the first day of the IPO, bids from non-institutional investor segment continued to remain weak with 58,19,746 number of shares in the segment getting subscribed by 0.02 times at 1,26,390 shares.

The allotment for the employee category received subscription by 0.04 times.

The company has already raised Rs.832 crore from anchor investors after allotting shares at the upper price band of ₹765 ($1.18) apiece.

With a face value of Rs.10 per share, the price band for the shares has been fixed between Rs.700 to Rs.765 ($1.07 – $1.18).

Barclays Bank PLC, Kotak Mahindra Capital Company and UBS Securities India are the managers for the issue with Citigroup Global Markets India, J.P. Morgan India and Morgan Stanley India acting as the global coordinators.

The fleet size of IndiGo comprises of 98 aircrafts, of which about 75 have been taken on lease.

Note:
1. The conversion rate used in this article is 1 US Dollar = 65.07 Rupees.
2. Some of the content is used from IANS.