InterGlobe Aviation's share sale to fetch up to Rs 3,945 crore

IndiGo's parent InterGlobe Aviation plans to raise up to Rs 3,945 crore through sale of shares to qualified institutional investors on September 15.

Apart from fresh issuance of shares, some promoter entities would be selling shares to qualified institutional buyers.

The company would offload up to 3.36 crore shares to eligible qualified institutional buyers on September 15 and the price band for the share sale has been fixed at Rs 1,1251,175 apiece, according to notices on the stock exchanges.

At the upper end of the band, the sale would fetch up to Rs 3,945.46 crore.

The price band is less than today's closing price of Rs 1,196.70 on the BSE.

Citigroup Global Markets India, J P Morgan India and Morgan Stanley India Company are the book running lead managers to the issue.

InterGlobe Aviation got listed on the exchanges in November 2015 and the promoters' holding stood at 85.88 per cent at the end of June 2017.

The company is required to have at least 25 per cent public shareholding within three years of listing.

Against this backdrop, promoter entities are planning to sell shares of the company.

Under the institutional placement, up to 3.36 crore shares are proposed to be sold. It would comprise fresh issue of 2.24 crore shares and offer for sale by four promoter entities.

Rakesh Gangwal, Shobha Gangwal, Asha Mukherjee and Chinkerpoo Family Trust will offload up to 1.12 crore shares.

Besides, promoter entities -- Kapil Bhatia, Rahul Bhatia and Rohini Bhatia -- (IGE Group) would sell shares before November 8, 2018.

This would be to fulfill the "IGE Group's contribution to meet the existing percentage prescribed under requirements for minimum public shareholding", the company had said in a filing on Monday.