IndiGo's Rs 3,000 Crore IPO Opens for Subscription Today: 10 Facts

InterGlobe Aviation, which operates the low-cost IndiGo airline, will hit the primary market on Tuesday with an aim to raise a little over Rs. 3,000 crore. India's biggest airline according to market share is aiming at a valuation of over $4 billion (Rs. 26,000 crore) through the initial public offer, being dubbed as India's biggest in three years.

Here are 10 things to know about IndiGo IPO:

1) IndiGo shares, with a face value of Rs. 10, can be bought in a price band of Rs. 700 to Rs. 765. Shares can be bought in multiples of 15. The IPO will close for subscription on October 29.

2) The IndiGo IPO comprises fresh issue of shares worth Rs. 1,270 crore. Promoters and non-promoters are selling shares worth about Rs. 1,750 crore. Together, the share sale can rake in up to Rs. 3,018 crore. Post issue, the promoter holding is expected to come down to 85 per cent from 93.4 per cent currently.

3) IndiGo has a net debt of Rs. 3,912 crore, all of which is related to aircraft purchases, according to President Aditya Ghosh. IndiGo plans to use the proceeds to retire Rs. 1,166 crore of debt, while the remaining amount will be used to fuel expansion, the company said.

4) InterGlobe's net worth (total assets minus total liabilities of a company) slipped to a negative Rs. 139 crore at the end of June 2015. The company, however, says that there is nothing to worry about. "In the first quarter we earned Rs. 7 crore a day net profit. We are now sitting three-and-a-months after that (June 30) and naturally the negative net worth becomes positive net worth," he noted.

5) IndiGo has been the only consistently profitable airline in the country for the last seven years, according to consultancy Centre for Aviation. In the latest June quarter, IndiGo posted a net profit of Rs. 640 crore on sales of Rs. 4,317 crore. For the year ended March 2015, IndiGo recorded a net profit of Rs. 1,296 crore on revenues of Rs. 14,309 crore.

6) IndiGo, which started flying in 2006, has risen rapidly to command almost 40 per cent of its home market - the biggest share of any airline. It also has one of the country's biggest fleets - 98 aircraft at present - allowing it to fly more frequently than other carriers.

7) According to Mr Ghosh, the average age of its fleet is around four years; a young fleet means less fuel is burnt, he added.

8) Shares in listed carriers have rallied sharply in the run-up to IndiGo's IPO. In last one month, SpiceJet shares have rallied 55 per cent while Jet Airways shares have surged over 20 per cent as compared to 5 per cent gain in the broader Nifty.

9) According to Angel Broking, IndiGo is a low-cost carrier (LCC) with an asset light business model which enables it to have lowest cost and highest profitability amongst Indian airline companies. The brokerage has a "subscribe" rating on IndiGo IPO. Anand Rathi brokerage also asked investors to "subscribe" to the IPO citing Indigo's market leadership, cost competitiveness, and low-cost carrier business model.

10) Some investors, however, said the pricing was on the high side. "Even though IndiGo is doing well and it is the country's most profitable airline, the pricing for this issue is a bit aggressive," said Neeraj Dewan, director at brokerage Quantum Securities.        

SpiceJet's Diwali Sale Dhamaka! More than 3,00,000 lakh seats on sale!

The all inclusive one-way fare applicable on direct flights encompasses all the metro cities and some of the most attractive tourist destinations in the country.

Festivities to continue at SpiceJet with a new fervor as the airline today announced another exciting discount sale offer with fares starting as low as Rs. 749/- base fare (excluding taxes) for the domestic and Rs. 3,999/- all in for the international sectors respectively. More than 3,00,000 lakh seats are available on this sale!

The all inclusive one-way fare applicable on direct flights encompasses all the metro cities and some of the most attractive tourist destinations in the country. Under this offer, tickets on routes like Delhi to Amristar, Ahmedabad to Mumbai all are priced at Rs. 749 base fare (taxes will be additional). While within the international sector, the sale offering has been geared up for hot spots like Chennai to Colombo at Rs. 3999 all-in among others.

SpiceJet’s current sale has been strategically sketched with a year-long travel period for the advantage of its flyers. The airline’s customers can therefore avail these very attractive domestic and global fares to plan their travel well in advance.

The three day feisty sale launched today will be open till midnight, October 29, 2015, whereas the travel period covered in this sale is 01st Feb – 29th October 2016.

“The attractive pricing clubbed with our robust network is expected to garner immense traction from customers across geographies and with advance purchase being a huge incentive to travellers, the year-long travel period under the current offering will provide SpiceJet customers with immense flexibility while enabling them to plan their travel well in advance.” said SpiceJet spokesperson.

Bookings for the new sale can be made across all channels, on www.spicejet.com, on online travel portals, and through travel agents. Customers booking through mobile app will be getting 3% extra discount on both domestic and international bookings.  Tickets under this offer are non-refundable (taxes and fees are refundable).

There is limited inventory under the offer, and seats will be available on First-Come-First-Served basis. The offer cannot be combined with any other offer and the sales fares are not applicable on group bookings. Fares vary from sector to sector depending on the travel distance and flight schedules and timings are subject to regulatory approvals and change(s).

20 Stocks in focus today

Check out the companies which will be in focus during trade today based on recent and latest news developments.

Bharti Airtel: The company has posted a net profit of Rs. 15,227 mn for the quarter ended September 30, 2014 as compared to Rs. 13,832 mn for the quarter ended September 30, 2015.

Aban Offshore Limited has informed the Exchange that the Company has received a letter of award from ONGC Ltd for deployment of jack-up rig Aban II for a period of 3 years. The total value of this firm order is approximately USD 50 Million (equivalent to Rs. 325 Crores). Contract is expected to commence during the first quarter of calender year 2016.

Maxwell Industries Ltd:The company has informed BSE that the Board of Directors of the Company at its meeting held on October 26, 2015, has approved the allotment of 30,00,000 equity shares to promoters and promoter group of the company pursuant to conversion of 30,00,000 warrants.

Axis Bank: Axis Bank is expected to report healthy growth in their domestic advances and asset quality within the guided band. However, earnings growth is likely to be marginally impacted by moderation in NIM and continuance of elevated credit cost.

Elder Pharmaceuticals Ltd: The pharma company reportedly plans to repay its creditors and fixed deposit investors by raising funds through a combination of debt, equity and asset sales.

Maruti Suzuki: Product mix is expected to have a big impact on the realizations for most companies under our coverage. For Maruti, while contribution of compact segment declined, contribution of Midsize (Ciaz) and Vans UV (launch of S-Cross) segment saw an increase. This would translate into better realizations for Maruti.

Steel Strips Wheels: The company has bagged an export order for supply of unassembled Steel wheels for supplies to Egypt market. The total order value would be about USD 2.8 mn for supplying approx 360,000 unassembled wheels in a period of 3 years.

Himachal Futuristic Communications Limited: The company reported Q2FY16 PAT is up by 4% to Rs.71.68 crore  as compared to Rs.68.94 crore in Q2FY15, while Profit After Tax for H1FY16 including exceptional item stood at Rs.184.07  crore, up by 33% as compared to Rs.138.41 crore in the corresponding first half of previous fiscal.

Blue Star: The company reported itd total Ooperating income of Rs. 716.66 crores for the quarter ended September 30, 2015, as compared to Rs. 642.24 crores in Q2FY15, representing an increase of 12%.

Navneet Education Ltd: The company reported its net profit at Rs.10.5 crore for the quarter ended September 30, 2015 as compared to Rs.98.4 crore for the same quarter in the previous year. The company’s total income has decreased by 20.5 per cent to Rs.117.4 crore for the quarter under review from Rs. 147.8 crore for the corresponding quarter of the previous year.

Den Networks: The Reserve Bank of India has notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74 per cent of the paid up capital of DEN Networks Limited under the Portfolio Investment Scheme (PIS).

State Bank Of Mysore Ltd: The net profit for the quarter stands at Rs. 132 crore. The gross NPA was at 4.19%.

NIIT Technologies Ltd: The company has announced that it has signed Long-term strategic agreement with FlyDubai.

REC: Rural Electrification Corporation plans to raise Rs. 700 crore through public issue of tax-free non-convertible bonds.


Lupin: Lupin Limited announced that its US subsidiary, Lupin Pharmaceuticals Inc. (collectively Lupin) has launched its Calcium Acetate Capsules, 667 mg (eq. 169 mg Calcium) having received final approval from the United States Food and Drug Administration (FDA).The pharma company has also announced the appointment of Martin Mercer as its President for Latin American business.

Wonderla Holidays Ltd: The net profit for the quarter stood at Rs.12 Crore. The total Income is at Rs.43.2 Crore.

Inox Wind Ltd: The company consolidated net profit has jumped by 63.48% to Rs. 89.13 crore for the second quarter ended September 30, 2015 as against Rs. 54.52 crore in the same period a year ago.

Sterling Holiday Resorts Limited: The company announced its signing of agreement to acquire ‘Nature Trails Resorts Private Limited’ - an adventure holiday company that operates resorts at four unique destinations in Maharashtra.

JSW Energy Ltd: The company has announced that JSW Energy Natural Resources South Africa Proprietary Limited, a step down subsidiary of the Company in South Africa which holds 67.27% in its subsidiary, South African Coal Mining Holdings Limited (SACMH) has intimated its firm intention in terms of Regulation 101 of the Companies Regulations, 2011 of the Companies Act, 2008 to the proposed delisting of SACMH on the Johannesburg Stock Exchange (JSE) and an offer to all remaining shareholders.

Housing Development Finance Corporation Ltd: The company has posted a net profit after tax attributable to the Corporation and its Subsidiaries of Rs. 21065.10 mn for the quarter ended September 30, 2015 as compared to Rs. 20643.60 mn for the quarter ended September 30, 2014.

Hester Biosciences Ltd: The company reported a 12 per cent growth in sales and 57 per cent in net profit in the second quarter of 2015-16, ended September 30, as compared to the corresponding period last fiscal.

Sterlite Technologies Ltd: The company reported net loss for the quarter stands at Rs. 15.5 crore.The total income for Q2 is at Rs.1,139 crore.

Elder Pharma to repay creditors, investors by selling assets

The company says it has been going through tough liquidity situation but is on the path of recovery and has substantial asset base to cover all its liabilities.

Elder Pharmaceuticals Ltd. reportedly plans to repay its creditors and fixed deposit investors by raising funds through a combination of debt, equity and asset sales.

The company intends to sell its stake in its subsidiaries in the UK and Bulgaria, reports a financial daily.

The company says it has been going through tough liquidity situation but is on the path of recovery and has substantial asset base to cover all its liabilities.

Earlier this month, the Bombay High Court directed Elder Pharma to repay INR 155 crore to small investors who had invested in the company’s fixed deposit in January.

The company also has to pay a few debenture holders INR 263 crore, according to the daily.

Elder Pharma also faces 24 winding up petition, including one from Tata Financials, reports the paper.

Results to watch out for: Maruti Suzuki, Axis Bank in focus

The results which are expected today are Maruti Suzuki India, Axis Bank, Lupin, Vedanta, Tvs Motor Company, Shasun Pharmaceuticals, Strides Arcolab, Alembic Pharmaceuticals, Ceat, Dish TV India, Jindal Hotels, Navin Fluorine International, Nucleus Software Exports.

The results which are expected today are Maruti Suzuki India, Axis Bank,  Lupin, Vedanta, Tvs Motor Company,  Shasun Pharmaceuticals, Strides Arcolab, Alembic Pharmaceuticals, Ceat,  Dish TV India, Jindal Hotels, Navin Fluorine International, Nucleus Software Exports, P.I.Industries,  Saurashtra Cement, Steelcast, Supreme Petrochem, Tata Communications, Thermax, Agri- Tech (india),  Coromandel International, Denis Chem Lab, Tecpro Systems, Tips Industries, Trident.

Bharti Airtel may invest US$200-400mn to boost 3G, 4G infra

There has been marginal pressure on voice pricing in the July-September quarter and that the competitive intensity continues unabated, Vittal said.

Bharti Airtel may invest an additional US$200-400 million in the current fiscal year to ramp up 3G and 4G infrastructure.

“Our willingness to spend an additional US$200-400 million on capex during the course of this year. A large part of that capex would really be around expanding our footprint in 3G and 4G,” Bharti Airtel MD & CEO (India & South Asia) Gopal Vittal told analysts during a conference call on Monday.

Bharti Airtel had already announced a capital expenditure guidance of about US$3 billion for FY16.

"The investment actually goes to drive incremental revenue streams, which is around data but at the same time, it creates the capacity to unclog 2G networks," Vttal said on the call.

On the issue of call drops, Vittal said that the Bharti Airtel is working with the Government to address the problem.

Vittal also said that there has been marginal pressure on voice pricing in the July-September quarter and that the competitive intensity continues unabated.

HDFC Life IPO may happen in mid-2016: Keki Mistry

In August, HDFC had announced that Standard Life will increase its stake in the JV, HDFC Life, to 35 per cent from the current level of 26 per cent.

HDFC is likely to go for public listing of its life insurance subsidiary in mid-2016 once its joint venture partner Standard Life hikes stake to 35 per cent, HDFC CEO Keki Mistry said on Monday.

In August, HDFC had announced that Standard Life will increase its stake in the JV, HDFC Life, to 35 per cent from the current level of 26 per cent.

“They (Standard Life) will buy 9 per cent of shares from us. For that 9 per cent the application has been made to FIPB recently, and also IRDAI (the regulator) has come out with some changes that are required in the shareholders’ agreement, which is currently being worked on,” Mistry told reporters in Mumbai yesterday.

“My sense is once this transaction is complete, we will look at an initial public offering (IPO). Therefore, an IPO will not happen in 2015 for sure, but somewhere in the middle of 2016,” he said.

Crompton Greaves to sell power systems business in Canada

As per the agreement, the structure of the deal and its commercial terms remain subject to applicable regulatory approvals.

With reference to earlier announcement dated May 28, 2015, wherein Crompton Greaves Ltd had intimated about having received a firm offer for divestment of Company’s Power Systems Business in Canada and also authorization in favour of a Committee of Directors ("Committee") to take appropriate next steps in that regard, Crompton Greaves Ltd has announced that the Committee at its meeting held on October 26, 2015 has approved the sale of Company’s Power Systems Business in Canada to PTI Holdings Corporation in a structured deal for an enterprise value of Canadian $20 million subject to post-closing adjustments. 

Pursuant to the approval of the Committee, a definitive Business Purchase Agreement with PTI Holdings Corporation will be executed on October 26, 2015. As per the agreement, the structure of the deal and its commercial terms remain subject to applicable regulatory approvals.

Rupee opens at 64.97/$

The currency touched a high and low of 64.94$ and 64.99/$ respectively.

Indian Rupee today opened at 64.97/$ in early trade on Tuesday. On the global,  Global markets are not offering any encouraging cues. In fact most of them are in the red. US stocks fell after new home sales came in less than expected. In international markets, market participants will prefer to remain on the sidelines ahead of US FOMC policy meeting statement tomorrow. Markets will also keep an eye on US advance Q3 GDP readings.

The rupee ended at 64.96/$ from its previous close of 64.82/$ on Friday. The currency touched a high and low of 64.94$ and 64.99/$ respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.96 and for Euro stood at 71.64 on October 26, 2015. While, the RBI’s reference rate for the Yen stood at 53.63, the reference rate for the Great Britain Pound (GBP) stood at 99.5452.
 

Nifty slips below 8,250 level

Some buying activity is seen in capital goods, auto, power, IT and teck sectors, while pharma, banking, fmcg and oil & gas sectors are showing weakness on BSE. The BSE Mid-cap Index is trading up 0.03% at 11,084, whereas BSE Small-cap Index is trading down 0.10% at 11,425.

At 9:25 AM, the S&P BSE Sensex is trading at 27,279 down 83 points, while NSE Nifty is trading at 8,236 down 25 points.

The BSE Mid-cap Index is trading up 0.03% at 11,084, whereas BSE Small-cap Index is trading down 0.10% at 11,425.

Some buying activity is seen in capital goods, auto, power, IT and teck sectors, while pharma, banking, fmcg and oil & gas sectors are showing weakness on BSE.

Maruti Suzuki, GAIL, Coal India, L&T, BHEL, RIL, Bharti Airtel, M&M and NTPC are among the gainers, whereas HDFC, Lupin, ONGC, Vedanta, Axis Bank, ITC, Hero MotoCorp, Cipla and HUL are losing sheen on BSE.

Indian Rupee today opened at 64.97/$ in early trade on Tuesday. On the global,  Global markets are not offering any encouraging cues. In fact most of them are in the red. US stocks fell after new home sales came in less than expected. In international markets, market participants will prefer to remain on the sidelines ahead of US FOMC policy meeting statement tomorrow. Markets will also keep an eye on US advance Q3 GDP readings.

Global markets are not offering any encouraging cues. In fact most of them are in the red. US stocks fell after new home sales came in less than expected. Maruti, Axis Bank and Lupin results will be in focus. Product mix is expected to have a big impact on the realizations for companies like Maruti. For Maruti, while contribution of compact segment declined, contribution of Midsize (Ciaz) and Vans UV (launch of S-Cross) segment saw an increase. This would translate into better realizations for Maruti.

The Finance Ministry is not looking to cut expenditure to show better-than-expected numbers in the current fiscal year despite mounting fiscal pressure. “The fiscal deficit target of 3.9 per cent of GDP for FY16 will be met. But instead of trying to improve this by lowering the deficit further, the main objective this year will be to ensure that there are no expenditure cuts,” a senior government official has been quoted as saying.

Nestle India on Monday said that it has resumed production of Maggi at three facilities and will launch the popular instant noodles after getting clearances from food testing laboratories. The Indian arm of the Swiss food giant will send first samples of the fresh Maggi batches to three accredited labs for tests. This is in compliance with the order of Bombay High Court.

InterGlobe Aviation Ltd., the parent company of IndiGo, on Monday raised INR 832 crore from anchor investors, including domestic and foreign institutions, a day before the start of its initial public offering (IPO). The company sold shares in the anchor book at INR 765 apiece, the upper end of the INR 700-765 IPO price band.

TVS Logistics Services Ltd. (TVSL), a subsidiary of Chennai-based TV Sundaram Iyengar & Sons Ltd., is reportedly planning to go public by 2016.  The company has met about 5-6 investment bankers and started talks over a possible initial public offering (IPO), according to a financial daily.