IndiGo Mandates Banks for IPO

Mumbai: India's InterGlobe Aviation Ltd., which operates budget carrier IndiGo, has mandated four investment banks for an initial public offering to raise around 15 billion rupees ($339.3 million), two people with direct knowledge in the matter said Monday.
"The mandate has just been given and the draft prospectus should be filed in the next month or two. The company is looking to tap the primary markets before the end of the year," one of the people told Dow Jones Newswires.
The other person said Morgan Stanley India Co. Pvt. Ltd., Citigroup Global Markets India Pvt. Ltd., UBS Securities India Pvt. Ltd. and Credit Suisse Securities (India) Pvt. Ltd. were the banks mandated for the share sale.
The Indian aviation industry is gradually finding its way to stability after being hit by the global economic slowdown, which sapped demand for air travel in 2008 and early 2009. Coupled with high jet fuel prices, it pushed airlines into heavy losses that accumulated every quarter.
Low-fare carriers such as IndiGo and SpiceJet, however, weathered the downturn better than their full-service rivals Air India, Jet Airways (India) and Kingfisher Airlines because of lower-priced tickets and cautious expansion plans.
19/04/10 John Satish Kumar/Wall Street Journal

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Categories: IndiGo Airlines Apr 2010