New Delhi: Ahead of the Rs 3,000-crore initial public offering (IPO), IndiGo’s parent, InterGlobe Aviation on Wednesday said 20 days of profit could cover its negative net worth of Rs 139 crore at the end of the June quarter.
Asserting InterGlobe has been profitable for seven years, with good cash flows, IndiGo President Aditya Ghosh said it had a well thought strategy that delivered a sharply lower cost structure. The IPO opens on October 27 and the price band is fixed at Rs 700-765.
“On June 30, technically, there was a negative net worth. That negative net worth is Rs 139 crore and on that day, we had Rs 3,600 crore cash. Absolutely, there is no question of concern,” Ghosh told PTI.
According to him, the negative net worth is worth 20 days of profit for IndiGo. “In the first quarter we earned Rs 7 crore a day net profit. We are now sitting three and a months after that (June 30) and naturally the negative net worth becomes positive net worth,” he noted. When asked whether how much the company has gained after wiping off the negative net worth, Ghosh declined to comment citing that it cannot give futuristic outlook before the IPO.
22/10/15 PTI/Business Standard
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Asserting InterGlobe has been profitable for seven years, with good cash flows, IndiGo President Aditya Ghosh said it had a well thought strategy that delivered a sharply lower cost structure. The IPO opens on October 27 and the price band is fixed at Rs 700-765.
“On June 30, technically, there was a negative net worth. That negative net worth is Rs 139 crore and on that day, we had Rs 3,600 crore cash. Absolutely, there is no question of concern,” Ghosh told PTI.
According to him, the negative net worth is worth 20 days of profit for IndiGo. “In the first quarter we earned Rs 7 crore a day net profit. We are now sitting three and a months after that (June 30) and naturally the negative net worth becomes positive net worth,” he noted. When asked whether how much the company has gained after wiping off the negative net worth, Ghosh declined to comment citing that it cannot give futuristic outlook before the IPO.
22/10/15 PTI/Business Standard
