Indigo fails to lure retail investors
InterGlobe Aviation has failed to attract enough retail investors
By : DC Correspondent
Update: 2015-10-30 03:22 GMT
MUMBAI: InterGlobe Aviation, the promoter of IndiGo airline, has failed to attract enough retail investors to its Rs 3,000-crore initial public offer (IPO), the biggest public offer since December 2012.
According to market experts, small investors largely stayed away from the IPO citing expensive valuation. Only 82 per cent of the portion reserved for the retail category was subscribed on the third and last day of sale. On the other hand, institutional investors participated in large numbers taking a long-term positive view on the domestic aviation sector.
The portion reserved for qualified institutional bidders (QIB) was subscribed 17.80 times while the portion set aside for high net-worth investors was subscribed 3.57 times. Overall, the IPO was subscribed 6.1 times receiving bids for 18.33 crore shares as against the issue size of Rs 3.01 crore shares. The company had fixed a price band of Rs 700-Rs 765 per share for its public offer valuing the company at around Rs 27,000 crore.