IndiGo hires 4 global i-banks to raise funds

The country’s biggest discount airline, IndiGo, run by InterGlobe Aviation Pvt. Ltd, has hired four international investment banks to help it raise funds this year to finance expansion plans that include the proposed start of overseas flights.
UBS AG, Morgan Stanley, Credit Suisse Group and Citigroup Inc. were hired this month by the airline to raise money through either an initial public offering (IPO) or the private equity route, said a top IndiGo executive, who didn’t want to be named.
“They will be presenting their recommendation on the valuations in a month or so, depending on which we will take a call (on) how to go about it,” the executive said. “IPO is one of the options, besides private equity.” The size of the share sale is yet to be decided.
IndiGo, based in Gurgaon on the outskirts of New Delhi, plans to begin flights to South and South-East Asia, West Asia and China after it completes the mandatory five years of operations in August next year. The carrier plans to add 19 more Airbus A320 planes to its fleet of 25 by the end of 2011.
If the offer materializes, it will be made by InterGlobe Aviation and not parent group InterGlobe Enterprises Pvt. Ltd, which also runs hotels and other travel-related businesses, the executive said.
In an emailed statement, the airline said it has “some banks working on it (fund-raising plans)”. “But no decision has been made yet,” it said.
15/04/10 Tarun Shukla/Live Mint

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Categories: Foreign Apr 2010, IndiGo Airlines Apr 2010