IndiGo promoters to offload stake through IIP route

Some of IndiGo promoters will offload their stake in the airline through an insitutional placement programme (IIP) wherein there will also be a fresh issue of shares. Up to 33.6 million shares are proposed to be sold, which will comprise the fresh issue of 22.4 million shares and the offer for sale (OFS) of 11.2 million shares, the company said. InterGlobe Aviation was listed on the exchanges in November 2015, and the promoters’ holding stood at 85.9 per cent at the end of June 2017. The firm 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.

“Issuance of equity shares by way of an institutional placement programme to qualified institutional buyers in accordance with regulations of Sebi,” IndiGo said in a notice to exchanges. The market cap of IndiGo is over Rs 44,000 crore.

Currently, there are more than 30 private sector firms in the listed space (trading is suspended in some of them) where promoter shareholding needs to be pared. The top 10, most of them newly listed, have to dilute shares worth nearly Rs 19,000 crore.

The IndiGo stock on Monday closed at Rs 1,220.30, down by 0.33 per cent, while the benchmark index was up 0.61 per cent.

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