India’s budget carrier IndiGo has begun the country’s biggest initial public offering since 2012. The successful airline is hoping to raise about half a billion dollars which will come in handy to expand its operations.
India’s largest carrier, IndiGo, on Tuesday launched three-day IPO procedures in what had been billed as the biggest initial public offering on the Bombay Stock Exchange since December 2012 when telecom infrastructure provider Bharti Infratel went public.
IndiGo is seeking to raise $460 million (416 million euros) to extend its current dominance of the budget airline sector.
Shares are being sold at between 700 rupees ($11) and 765 rupees, with the incoming money meant to spent expanding operations and trimming debt.
Booming air traffic
IndiGo is famed for its no-frills approach, reliable service and a rare fixation with punctuality.
“We focus only on getting customers from point A to B safely and serve food that will not make them sick,” the airline’s president, Aditya Ghosh, said in a statement ahead of the IPO.
Despite its vast potential, India has proven quite painful for most of its airlines. Many have been beset by losses and laden with debt, while state carrier Air India has been dependent on government life support.
By contrast, IndiGo, which only started flying in 2006, has risen rapidly to command almost 40 percent of its home market and now is the only persistently profitable airline in the Asian nation.