Shares of InterGlobe Aviation, which runs the low-cost airline IndiGo, made a strong debut on the exchanges today. Its shares rose as much as 15.4 per cent to a high of Rs 883 on the Bombay Stock Exchange against its issue price of Rs 765 per share.
Being the only consistent profitable carrier in India, IndiGo's initial public offer (IPO) got strong response from the market. It was over-subscribed six times on account of strong demand from qualified institutional segment, which attracted bids of nearly 18 times than the number slotted for the category.
IndiGo sold shares in the price band of Rs 700 and Rs 765. Strong demand for its shares led the company to price its share at the upper end of its band at Rs 765, which valued the carrier at around $4 billion.
As of 10.05 a.m., InterGlobe Aviation shares traded 14.9 per cent higher at Rs 879 as compared to its issue price.
In comparison, the Sensex was down 0.57 per cent.