Indigo to raise $200 million through IPO

Mumbai

India's largest carrier IndiGo said Tuesday it hoped to raise almost $200 million in an initial public offering (IPO), as it tries to maintain its dominance of the competitive budget airline sector.

The New Delhi-based airline announced in a statement that it intends to sell more than 30 million shares valued at around $199 million, lower than what analysts had expected. 

"The equity shares offered through the issue are proposed to be listed on the BSE (Bombay Stock Exchange) Limited and the National Stock Exchange of India Limited," a statement said.

Industry insiders had for nearly a year been expecting the no-frills airline to announce the stake sale, with local media reports predicting that the public offering would seek $400 million.

India's stock market regulator will now rule on IndiGo's proposals in the coming months, with an IPO possible later in the year if it gives its approval.

IndiGo, launched in 2006, enjoys nearly a one-third share of India's domestic flight market as tens of millions of increasingly affluent citizens take advantage of cheap air travel.

In October it agreed to buy 250 single-aisle A320 neo aircraft from Airbus for $26 billion.