low cost airline IndiGo’s parent firm InterGlobe Aviation has received approval from market regulator Sebi for its Rs2,500 crore initial public offer.
Under the offer, the company plans to issue fresh shares worth IndiGo’s Rs2,500-crore An equivalent amount can be raised through sale of up to 3.01 crore shares by its existing shareholders.
The Securities and Exchange Board of India (Sebi) has cleared the proposed initial share sale and gave its final observations on the IPO on September 11.
The papers for raising up to 2,500 crore through the IPO were filed with Sebi in June this year.
InterGlobe Aviation runs the country’s biggest airline by market share under the IndiGo brand.
Citigroup, JPMorgan India, Morgan Stanley, Barclays, UBS Securities India and Kotak Mahindra Capital Company are managers for the share sale.
IndiGo is one of the two profit-making domestic airlines. The only other profitable airline is GoAir.
The budget carrier saw its net profit jump over four-fold to Rs1,304 crore in the last fiscal as it remained profitable for seven straight years.
This was also the highest ever annual profit registered by the airline since its inception in 2005.