IndiGo plans to hit the IPO market by Q3 FY14: Sources

India's budget airline, IndiGo wants to make the most of the current bull run. ET NOW learns that the airline's holding company, InterGlobe Aviation is gearing up to hit the capital market with a big-bang IPO by the third quarter of this financial year. Three independent sources with direct knowledge share that IndiGo has initiated the process and is in talks with merchant bankers for the public issue.

Sources indicate that InterGlobe Aviation could be looking at a valuation of around Rs 10,000 crores in the IPO but a lot will depend on the investor response and the valuation by the banks on the deal. “This could be an opportune time for value unlocking since the airline is profitable and markets are offering high valuations “ and industry expert said. Sources also indicate that IndiGo is also gearing up for stiff competition in the Indian aviation space due to the new entrant AirAsia India and also Jet Airways which now has Etihad Airways as its partner.

Civil aviation research and advisory firm CAPA (Centre for Aviation) in their India Outlook FY15 estimate IndiGo to post revenues of approx Rs 11,000 cr in FY14 and a bottomline of Rs 350-400 cr. According to CAPA’s research, IndiGo has been profitable in the period FY09-FY14.

InterGlobe Aviation did not respond to ET NOW’s queries on their IPO plans.