Ahead of its much-awaited IPO on Tuesday, IndiGo's parent InterGlobe Aviation has raised Rs 832 crore from anchor investors by allotting shares at the upper price band of Rs 765 apiece.
The company has allotted little over 1.08 crore shares to more than 40 anchor investors, including the Singapore government, Monetary Authority of Singapore, Goldman Sachs India Fund, Abu Dhabi Investment Council - Tallyfish, Indus India Fund (Mauritius) Ltd, Kuwait Investment Authority Fund 224, Credit Suisse Singapore Ltd and Sundaram Mutual Fund.
InterGlobe would be hitting the capital markets to raise Rs 3,018 crore through the initial public offering, the biggest in nearly three years.
The price band for the offer has been fixed at Rs 700-765 per share. The IPO committee of the company's board of directors on Monday finalised the allocation of little over 10.87 million (1.08 crore) shares to anchor investors at the price of Rs 765 apiece, according to a regulatory filing. At this price, the total amount is Rs 832.03 crore.
Other anchor investors are Acacia Partners LP, Fidelity Securities Fund (Fidelity Blue Chip Growth Fund), DB International (Asia) Ltd, DSP Blackrock India Tiger Fund and Columbia Emerging Markets Fund. Sources said the company has decided to reduce the number of shares in the employee reservation portion to 2,200,000 from 3,200,000.
Proportionately, the proportion of shares available for retail investors, high networth individuals and Qualified Institutional Buyers (QIBs) has been increased, they added. The company has reduced its initial share sale size to a little over Rs 3,000 crore last week, with three of the promoters deciding to sell less number of shares than proposed earlier.
The offer comprises fresh issue of shares worth Rs 1,272.2 crore and the revised Offer for Sale (OFS) size that would be about Rs 1,746 crore. Together, the share sale can rake in up to Rs 3,018.2 crore.
With three promoters - Rakesh Gangwal, Shobha Gangwal and Chinkerpoo Family Trust - deciding to offload less number of shares in the company, the IPO size has come down to Rs 3,018 crore.
On the basis of earlier proposal, the initial share sale could have fetched up to Rs 3,268 crore. These figures are based on the upper price band of Rs 765 apiece.
The IPO would conclude on October 29. Barclays Bank PLC, Kotak Mahindra Capital Company Limited and UBS Securities India will manage the issue. Currently, IndiGo has a fleet of 98 aircraft and about 75 of them are on operating lease - a business model which has helped it lower costs.