InterGlobe Aviation Ltd., which operates IndiGo airlines, will launch an institutional share sale on Friday to raise over Rs 3,900 crore, a part of which will be used to reduce its short-term debt and acquire aircraft on ownership basis.
The Gurgaon-headquartered company will open its qualified institutional placement to offer 3.36 crore equity shares at a price band of Rs 1,125 to Rs 1,175, according to its term sheet.
As part of the issue, InterGlobe will issue 2.24 crore fresh shares, while the remaining will be for sale to bring down the promoter holding to meet the minimum public shareholding norms.
In the first quarter of this financial year, the company had a free cash of Rs 5,190 crore, which will be further boosted after the completion of the share sale. The parent company of IndiGo is also now looking to change its business model to owning aircraft from the sale and leaseback model. The management also said that it would mostly use internal funds to own aircraft.