IndiGo would have its fair share of glory: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital, shares his view on the forthcoming IPO by IndiGo.

ET Now: There is lack of investor confidence in the aviation sector. But there is a domestic airline, IndiGo, that has been showing profits on a consistent basis. Could the forthcoming IPO sort of rerate the aviation sector? Would it make it easier for SpiceJet to raise money?

Prakash Diwan: IndiGo would have its fair share of glory for some time. It is not going to be completely wished away. One must remember one thing that being listed and open to public scrutiny is a very different thing than having run as a start up to being a mature business.
What is more important is that aviation is one of top five sectors where you have stressed assets, restructured assets. It comprises of about 52 per cent of the top 5 sectors’ NPAs. Aviation is a significant component, even as the number of aviation players is low. What it does is that it gives some sort of respite. Other players will also become competitive and, hence, profitable. Hopefully, the sector could start getting some sort of a positive resonance, which gets bankers out of the mess. Therefore, it could be good in a way, but whether the…

ET Now: Is IPO IndiGo not a ‘subscribe’?

Prakash Diwan: Let us wait for the final print. Of course, all these companies will get subscription because you need allocation part of the market cap game. Let us see how it pans out.