Interglobe Aviation Limited the company which owns popular low cost airline “Indigo” completed its fund raising. The company had tapped the capital markets with its simultaneous issue for fresh issue to raise Rs 1,272.20 crs and an offer for sale of 2.28 cr shares in a price band of Rs 700-765. The issue was driven around participation of QIB’s who subscribed the issue in the first hour of subscription on day one. The response from HNI’s came on the last day and that bucket was oversubscribed 3.57 times and the retail which came on the back of QIB and HNI subscription and helped in no small manner by an active grey market subscribed 92% of the bucket size.

Employees of a company are well aware of what happens in the company and in the strictest sense of ‘insider trading’ are the real insiders. What is therefore surprising is that they (employees) were given a discount of 10% and they virtually ignored their reserved bucket. Of the total 22 lac shares on offer in this category, a mere 2,75,535 shares or 13% of the bucket size. Why with a 10% discount, such a successful business model which received bids for over Rs 15,000 crs could not attract bids from employees working on 97 aircraft and over 400 on order. It indeed is intriguing.

The overall issue was subscribed 6.15 times and considering anchor portion the same was subscribed 4.60 times and raised demand for over Rs 15,000 crs.

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The draft aviation policy was announced on Friday, one day after the issue was closed for subscription. Very clearly the essence of the draft policy is to make air travel more popular and make air connectivity that much easier. In the process it would help in connecting the country, encouraging travel, boosting tourism and helping the people of this country in doing their business, travel and leisure. The success of the IPO has happened and one now needs to see how the share fares on the bourses, considering that the company has had its more than fair share of controversies already.