Freshly listed , India’s most popular arline go of to a flying start in BSE . The company which got listed on Monday , is selling like hot cakes at Rs 859 per share which is about 16-17% of its Initial public offering . The latest offer being at Rs 890 a share. The escatic president of the group Aditya Ghosh was on cluod nine and said “”I think our hearts stopped for a moment just before the (listing) bell went off…but it’s been an absolute fantastic takeoff. Now it’s time to work harder and deliver on the trust that our shareholders have bestowed on us,”.”There’s no denying that the pressure will be much higher now, not just for me but for the entire team. But it also gives us an opportunity to prove our story to our shareholders,
The IPO of the holding company , Interglobe aviation which closed in October was placed at bids whoch were 6.16 times the sale of individual shares. The stock was in huge demand by foreign institution while the excitement to place the bid was also seen in domestic market with Rakesh jhunjhunwala leading the show .With the IPO , the market capitalization of Interglobe aviation increased to Rs 31,675 crore. This has put the company into big league ahead of Jet Airways and Spice Jet .
“The pricing has been driven by the positive fundamentals and the low floating stock. IndiGo is in great shape today with high loads and less fuel costs and 43 of the fuel efficient Airbus A320 Neos joining the airline in the next two years. My biggest concern was whether IndiGo would be able to sustain the dividend policy it has been implmenting till now. The airline has answered that very clearly that it will. If it does stick to this, it will find favour with the investors,” said Deven Choksey of KR Choksey.
“Also SEBI is coming up with a new policy under which company’s will have to define their divident distribution policy. That will help,” he added.
MR Choskey had earlier question the dividen policy of the group and cited reservations on whether the company will be able to pay the dividends after the IPO . He was also skeptical on the growth of the firm due to feirce domestic competiotion and increasing international oil prices . With on time schedule and clean and clear policy Indigo has made a brand of its own in the volartile domestic air market .The company has shown immense growth with six straight profitable quaters in the recent times.