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IndiGo Has a 'Blockbuster Takeoff', Shares Soar on Market Debut

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IndiGo Has a 'Blockbuster Takeoff', Shares Soar on Market Debut
IndiGo shares made a spectacular market debut on Monday, opening 12 per cent higher at Rs 855.80. Shares in the budget carrier, which were issued at Rs 765, rose to an intraday high of Rs 898, representing 17.4 per cent gains on first day of trade.

At its day high, IndiGo was valued at over Rs 32,000 crore (nearly $5 billion), making it the biggest domestic carrier by market cap. IndiGo is the country's biggest airline in terms of market share.

"IndiGo shatters some myths and breaks some records lists at close to $5 billion market cap. Whew!! Retail and Employees missed the flight," tweeted portfolio manager Ravi Dharamshi.

IndiGo president Aditya Ghosh said he did not expect such a "blockbuster takeoff", but added that the strong listing is the result of years of hard work.

Analysts say IndiGo is reaping the benefits of being the only consistent profitable carrier in a market that is plagued by high costs, regulatory hurdles and rising competitive intensity.

InterGlobe Aviation, the company that runs IndiGo, earlier raised Rs 3,000 crore in its initial public offer. The biggest IPO in three years was over-subscribed six times, mainly on account of strong demand from qualified institutional investors.

InterGlobe Aviation shares ended 14.8 per cent higher at Rs 878.45 on the BSE as compared to their issue price. Shares in other carriers such as Jet Airways and SpiceJet finished 4.27 per cent and 5.1 per cent lower, respectively.


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