India's largest domestic carrier set to raise £325.6 million

India's largest domestic carrier set to raise £325.6 million

Indian budget carrier IndiGo plans to go public in a share offering due to raise as much as 32.68 billion rupees (£325.6 million).

The airline proposed to list on the Bombay Stock Exchange and the National Stock Exchange of India.

Owned by InterGlobe Aviation, IndiGo is the country's largest domestic carrier by market share.

The public offer is set to open today (Tuesday) and close on October 29.

The airline, formed in 2006 with a single aircraft, now operates a 97-strong fleet of Airbus A320s across 33 cities in India, claiming a 33.9% domestic market share.

IndiGo's international destinations currently include Bangkok, Dubai, Kathmandu, Muscat and Singapore.

The carrier plans to use the net proceeds for repayment of certain outstanding lease liabilities, aircraft acquisition, the purchase of ground support equipment and for general corporate purposes.

President, Aditya Ghosh, told India’s Financial Express: “Investors should subscribed to the IPO because we are the most profitable airline in the fastest growing aviation market in India.

“We have got a competitive advantage which no one can replicate for the next five years. With 33.9% market share, we are also the largest domestic carrier.”

The airline finalised a deal with Airbus in August to buy 250 A320neo aircraft worth £17 billion – the single largest order by number of aircraft received by the European manufacturer.


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