The initial public offer (IPO) of InterGlobe Aviation, that owns and operates the profitable airline IndiGo, saw the offer fully subscribed by 1:15 pm on Wednesday, the second day of the three-day open offer, led mainly by institutional investors.
While the issue has been fully subscribed, the offer for sale will continue till Oct 29 (Thursday) and all bids for shares will be allocated on a pro-rata basis on the conclusion of the IPO.
According to information posted by the National Stock Exchange, of the total 3,01,22,088 shares (30 million odd shares) offered, the issue received bids for 3,02,24,145 shares, making it a complete subscription.
The institutional segment – the qualified institutional buyers (QIBs) – saw the maximum response, with bids coming in for 29.52 million shares, of the 8.52 million shares on offer for this category, about 3.46 times, implying strong support from institutional shareholders.
The retail individual investor segment saw very low participation of bids for 623,640 shares of the 13.57 million shares on offer for the category, which is 0.05 times. The price band for the shares was in the Rs 700-765 a share range.
InterGlobe Aviation’s Rs 3,018-crore issue has been much talked about in market circles, as in size it is larger than the Rs 1,150-crore Coffee Day Enterprises IPO that concluded just before the launch of the Indigo IPO. Both the issues saw good response from institutions while retail individuals and high net worth individuals did not participate strongly.
“There is certain reluctance on the past of retail investors as the sector is complex and has various factors acting on it,” said Mayuresh Joshi, vice president at Angel Broking. “However the response has been good and I think we can see retail subscription slowly increasing as we move onto the third day. It is one of the very few aviation companies to have posted profits consistently,” he added.