Business

IndiGo To Retire Rs 1,166 Crore Debt From IPO Proceeds

न्यूज़ वर्ल्ड इंडिया | 0
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| October 19 , 2015 , 22:34 IST
Set to hit the capital markets with Rs 3,268 crore IPO next week, InterGlobe Aviation on Monday said it will retire nearly one-third of its total debt of Rs 3,912 crore from the share-sale proceeds. InterGlobe Aviation is the holding company of IndiGo airline. The company said it will retire Rs 1,166 crore out of its Rs 3,912-crore debt from the IPO proceeds. Stating that the airline has not a single penny in working capital or non-aircraft purchase related debt, company President Aditya Ghosh said the entire Rs 3,912 crore debt it has is related to aircraft purchases. Out of its nine years of existence, it has been profitable in seven years, he said. "For us the company turning a negative networth of Rs 139 crore is a non-event", Ghosh said. ALSO READ: IndiGo Net Profit At Record High, Sees 300% Jump In FY15 It happened on June 30, when the company declared an interim dividend of Rs 1,500 crore to the promoters. Since then the networth has turned positive and it remains so. As of now "we have a cash balance of over Rs 3,500 crore on our books", he said. "We had to report that we had negative networth for disclosure purposes as we happened to file our IPO papers with the Sebi on June 30. But let me repeat, that is a non-event as far as IndiGo and InterGlobe are concerned, " Mr Ghosh said while formally announcing the IPO. When asked about hefty payouts the promoters have been getting all these while, he said, "As a manager my mandate is to keep my customers happy, my employees happy and also investors/shareholders. I have been doing as a private company and will continue to do so as public company going forward." Mr Ghosh said the company will launch its Rs 3,268 crore public issue which will remain open till October 29. The Rs 10-share has been priced at Rs 700-765. The public issue includes a share premium consisting of a fresh issue aggregating up to Rs 1,272.2 crore and offer for sale of up to 26,112,000 shares. ALSO READ: IndiGo Firms Up Order For 250 Airbus A320neo Jets In the June quarter, IndiGo posted total revenue of Rs 4,317.19 crore. For the year ended March 2015, the carrier recorded a net profit of Rs 1,295.58 crore on revenues of Rs 14,309.14 crore. The Gurgaon-based entity is also the largest domestic carrier by market share, having flown over one-third of the total passenger traffic carried by Indian airlines in August.