IndiGo shares take off spectacularly, surprise promoters

Shares in budget carrier IndiGo made a spectacular market debut on Monday, opening 12 per cent higher than the offer price at Rs855.80. The shares, which were issued at Rs765, rose to an intra-day high of Rs898, representing 17.4-per cent gains on the first day of trade.

At its day high, IndiGo was valued at over Rs32,000 crore (nearly $5 billion), making it the biggest domestic carrier by market capitalisation. IndiGo is the country's biggest airline in terms of market share.

"IndiGo shatters some myths and breaks some records lists at close to $5 billion market cap. Whew!! Retail and Employees missed the flight," tweeted portfolio manager Ravi Dharamshi.

IndiGo President Aditya Ghosh said he did not expect such a "blockbuster takeoff", but added that the strong listing is the result of years of hard work.

Analysts say IndiGo is reaping the benefits of being the only consistently profitable carrier in a market that is plagued by high costs, regulatory hurdles and rising competitiveness.

 InterGlobe Aviation, the company that runs IndiGo, earlier raised Rs3,000 crore in its initial public offer. The biggest IPO in three years was over-subscribed six times, mainly on account of strong demand from qualified institutional investors.

As of 11.05 a.m., InterGlobe Aviation shares traded 15 per cent higher at 879 as compared to its issue price. Shares in other carriers such as Jet Airways and SpiceJet traded lower by 1.5 per cent and 3 per cent respectively.