How Amsterdam is Building the City of the Future Sponsored This content is created collaboratively with one of our sponsors.
India carrier Indigo needs an IPO if it hopes to better compete against AirAsia, but Indigo’s performance isn’t exactly a confidence-builder.
InterGlobe Aviation Pvt., which operates Indian budget carrier IndiGo, has chosen banks for an initial public offering next year that could raise about $400 million, people with knowledge of the matter said.
Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley will lead the offering, which may value the company at about $3 billion, the people said. Deutsche Bank AG, Kotak Mahindra Capital Co. and Standard Chartered Plc are also working on the share sale, one of the people said, asking not to be identified as the matter is private.
India’s biggest domestic carrier by market share is seeking a listing as it faces new competition from AirAsia Bhd., whose local venture started operations last month. Over the past seven years, the country’s airlines have lost an average $22 every time a passenger stepped on board, according to estimates from CAPA Center for Aviation.
IndiGo had a 30.2 percent market share on local routes in the first five months of the year, compared with Jet Airways India Ltd.’s 22.9 percent and Air India Ltd.’s 19.3 percent, according to aviation ministry data.
The Economic Times reported the bank selections earlier today, citing unidentified people. IndiGo President Aditya Ghosh didn’t immediately respond to an e-mail seeking comment. A spokeswoman for IndiGo, who asked not to be named citing company policy, declined to comment.
–With assistance from Anurag Kotoky in New Delhi.
To contact the reporter on this story: George Smith Alexander in Mumbai at firstname.lastname@example.org To contact the editors responsible for this story: Philip Lagerkranser at email@example.com Ben Scent, Dave McCombs
-0- Jul/16/2014 05:49 GMT