» INDIGO :OCT 27-29 2015.
» PRICE BAND : RS 700-765.
» SHARES OFFER : 3 Cr shares
» IPO SIZE :12.6-13% Equity/3200 cr
»MCAP POST ISSUE : ~24k-27k Cr
INDIGO IPO : 5 key things the draft prospectus reveals about the airline:
FLEET STRATEGY:
» As of 30 April, the IndiGo fleet consisted of 96 Airbus A320 aircraft. The airline had placed a firm order with plane maker Airbus SAS for 100 A320 aircraft in June 2005, all of which were delivered by 3 November 2014, two years ahead of scheduled.
» IndiGo placed another order with Airbus for 180 A320neo aircraft in June 2011. Magnitude of our 2005 and 2011 aircraft orders helped us to negotiate favourable terms with Airbus and our other aircraft-related suppliers and service providers.
» The average age of IndiGo’s fleet is 3.26 years as of 30 April 2015.
» IndiGo’s fleet of 96 aircraft, 22 are on finance leases and 74 are on operating leases, including 12 aircraft on short-term operating leases, which work out to be cheaper for the airline.
PROFITABILITY:
» The airline turned profitable in fiscal 2009 and has remained profitable in each subsequent fiscal through FY14. No other Indian airline has consistently remained profitable over the same period, according to consulting firm CAPA India.
» The airline reported a net profit of Rs.140.59 crore, Rs.579.46 crore Rs.479.09 crore for fiscal 2012, 2011 and 2010, respectively.
» As of 31 December 2014, IndiGo had a total debt of Rs.4,002.82 crore. All of this debt is aircraft related and not on account of working capital expenses.
OWNERSHIP STRUCTURE:
» Ahead of the proposoed IPO, IndiGo’s promoters tweaked the airline’s shareholding structure to enable the share sale and create headroom for getting in foreign investors. One of the company’s promoters, Gangwal, brought his 47.88% shareholding into the NRI (non-resident Indian) category.
» Earlier this holding was considered as FDI since it was held through a foreign company, Caelum Investment LLC. Indian law allows a foreign company or airline to own up to 49% in a domestic airline. However, an NRI is allowed to hold 100% in an airline
» The rest of the stake is held by IndiGo’s other promoters, including Rahul Bhatia, who holds 51.12% in the company.
» Apart from the holding company (InterGlobe), those selling shares as part of the IPO include Bhatia and Gangwal. The airline’s former and first chief executive officer, Newton Bruce Ashby, and current chief commercial officer Sanjay Kumar will completely sell their shareholding in the company.
PREFERANCE SHARE CONVERTION:
» IndiGo has converted several CPS or convertible preference shares into equity shares. Besides, some preference shares changed hands.
» 2,004 CPS of Rs.1,000 each were transferred from Chesapeake International Investments LLC to Rakesh Gangwal on 24 July 2014 for cash at a price of Rs.145,905 each CPS.
» This effectively works out to a per share value of Rs.145.9, since each CPS converted into 1000 shares after a share split and a 9:1 bonus issue.
» In another transaction, 1,503 CPS of Rs.1,000 each were issued to Paul Carl Schorr, IV (nominee of G5 Investments) on 29 September 2006 for cash at a price of Rs.7,630 (including a premium of Rs.6,630) each CPS.
» PRICE BAND : RS 700-765.
» SHARES OFFER : 3 Cr shares
» IPO SIZE :12.6-13% Equity/3200 cr
»MCAP POST ISSUE : ~24k-27k Cr
INDIGO IPO : 5 key things the draft prospectus reveals about the airline:
FLEET STRATEGY:
» As of 30 April, the IndiGo fleet consisted of 96 Airbus A320 aircraft. The airline had placed a firm order with plane maker Airbus SAS for 100 A320 aircraft in June 2005, all of which were delivered by 3 November 2014, two years ahead of scheduled.
» IndiGo placed another order with Airbus for 180 A320neo aircraft in June 2011. Magnitude of our 2005 and 2011 aircraft orders helped us to negotiate favourable terms with Airbus and our other aircraft-related suppliers and service providers.
» The average age of IndiGo’s fleet is 3.26 years as of 30 April 2015.
» IndiGo’s fleet of 96 aircraft, 22 are on finance leases and 74 are on operating leases, including 12 aircraft on short-term operating leases, which work out to be cheaper for the airline.
PROFITABILITY:
» The airline turned profitable in fiscal 2009 and has remained profitable in each subsequent fiscal through FY14. No other Indian airline has consistently remained profitable over the same period, according to consulting firm CAPA India.
» The airline reported a net profit of Rs.140.59 crore, Rs.579.46 crore Rs.479.09 crore for fiscal 2012, 2011 and 2010, respectively.
» As of 31 December 2014, IndiGo had a total debt of Rs.4,002.82 crore. All of this debt is aircraft related and not on account of working capital expenses.
OWNERSHIP STRUCTURE:
» Ahead of the proposoed IPO, IndiGo’s promoters tweaked the airline’s shareholding structure to enable the share sale and create headroom for getting in foreign investors. One of the company’s promoters, Gangwal, brought his 47.88% shareholding into the NRI (non-resident Indian) category.
» Earlier this holding was considered as FDI since it was held through a foreign company, Caelum Investment LLC. Indian law allows a foreign company or airline to own up to 49% in a domestic airline. However, an NRI is allowed to hold 100% in an airline
» The rest of the stake is held by IndiGo’s other promoters, including Rahul Bhatia, who holds 51.12% in the company.
» Apart from the holding company (InterGlobe), those selling shares as part of the IPO include Bhatia and Gangwal. The airline’s former and first chief executive officer, Newton Bruce Ashby, and current chief commercial officer Sanjay Kumar will completely sell their shareholding in the company.
PREFERANCE SHARE CONVERTION:
» IndiGo has converted several CPS or convertible preference shares into equity shares. Besides, some preference shares changed hands.
» 2,004 CPS of Rs.1,000 each were transferred from Chesapeake International Investments LLC to Rakesh Gangwal on 24 July 2014 for cash at a price of Rs.145,905 each CPS.
» This effectively works out to a per share value of Rs.145.9, since each CPS converted into 1000 shares after a share split and a 9:1 bonus issue.
» In another transaction, 1,503 CPS of Rs.1,000 each were issued to Paul Carl Schorr, IV (nominee of G5 Investments) on 29 September 2006 for cash at a price of Rs.7,630 (including a premium of Rs.6,630) each CPS.
