Indigo’s IPO great success as Indian aviation flies high on low fuel price

The Initial Public Offering of InterGlobe Aviation , operator of India’s no-frill airlines Indigo has been a grand success. It has raised Rs 30180 million through this IPO which clearly signals investors’ renewed interest in the aviation sector that has seen significant improvement in their sales and profitability.

The low price fuel regime has also helped another low cost airline, Spice which had almost sunk . It has successfully been revived. Aviation is among the few Indian sectors which are flying high on the back of low commodity prices.  

Questions raised on corporate governance about Indigo’s promoters have  deterred  the investors’ interest in its IPO. The promoters had transferred large reserves as dividend before the IPO.

GoAir is also mulling IPO.

Pic: Courtesy Indigo Airlines

The Initial Public Offering of InterGlobe Aviation , operator of India’s no-frill airlines Indigo has been a grand success. It has raised Rs 30180 million through this IPO which clearly signals investors’ renewed interest in the aviation sector that has seen significant improvement in their sales and profitability.

The low price fuel regime has also helped another low cost airline, Spice which had almost sunk . It has successfully been revived. Aviation is among the few Indian sectors which are flying high on the back of low commodity prices.  

Questions raised on corporate governance about Indigo’s promoters have  deterred  the investors’ interest in its IPO. The promoters had transferred large reserves as dividend before the IPO.

GoAir is also mulling IPO.