New Delhi: IndiGo’s IPO, valuing its parent company at over USD 4 billion, is a significant milestone for the domestic aviation sector that has been grappling with adverse conditions over the last many years, says a report.
Aviation think tank Centre for Asia Pacific Aviation (CAPA) today said carrier’s success is more valuable as the market conditions over last 9-10 years have been extremely adverse, it noted.
The Rs 3,018-crore initial share sale of IndiGo’s parent InterGlobe Aviation today began on a promising note as the issue was subscribed 87 per cent on the first day itself. CAPA said IndiGo’s very successful IPO, that values the company at USD 4-4.2 billion is a significant milestone for the entire industry and would “structurally re-rate the sector”.
“IndiGo’s valuation also reflects a very strong confidence in the India’s aviation story especially with massive growth upside for next 3-4 decades,” CAPA said, while adding that more low cost carriers are expected to get listed in the next 1-2 years.
According to the think tank, other airlines are expected to benefit strategically post IndiGo’s IPO including a possible further upside in the listed stocks especially after third quarter results.
27/20/15 Financial Express
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Aviation think tank Centre for Asia Pacific Aviation (CAPA) today said carrier’s success is more valuable as the market conditions over last 9-10 years have been extremely adverse, it noted.
The Rs 3,018-crore initial share sale of IndiGo’s parent InterGlobe Aviation today began on a promising note as the issue was subscribed 87 per cent on the first day itself. CAPA said IndiGo’s very successful IPO, that values the company at USD 4-4.2 billion is a significant milestone for the entire industry and would “structurally re-rate the sector”.
“IndiGo’s valuation also reflects a very strong confidence in the India’s aviation story especially with massive growth upside for next 3-4 decades,” CAPA said, while adding that more low cost carriers are expected to get listed in the next 1-2 years.
According to the think tank, other airlines are expected to benefit strategically post IndiGo’s IPO including a possible further upside in the listed stocks especially after third quarter results.
27/20/15 Financial Express
