Indigo IPO issue subscribed by 80.5 percent on Day 1

Experts say that the IPO will prove to be positive trend for the industry considering the cases of debt-ridden Kingfisher Airlines and the recent Spice Jet.

“We focus only on getting customers from point A to B safely and serve food that will not make them sick”, the airline’s president, Aditya Ghosh, said in a statement ahead of the IPO. “And they deliver that better than any airline”, Ocean Dial Investments’ Gaurav Narain told CNBC.

The airline proposed to list on the Bombay Stock Exchange and the National Stock Exchange of India.

The overall issue is worth Rs 3,130 crore, making it one of the largest in several years.

The company has, however, already raised Rs. 832 crore from anchor investors after allotting shares at the upper price band of Rs. 765 per share.

The anchor investors included marquee foreign institutional investors like US-based asset management company Fidelity, sovereign wealth fund Government of Singapore and US-based investment bank Goldman Sachs.

Traveling entrepreneur Rakesh Gangwal and Rahul Bhatia, a former chief executive set up in 2006 IndiGo. Analysts estimate that IndiGo keeps costs low by buying just one type of aircraft from one supplier – Airbus – and selling and leasing back planes. The IPO, the biggest in the country in almost three years, will close Thursday and aims to raise over $460 million.

It has also benefited from its track record on punctuality, while falls in fuel costs have helped to boost revenue. It has 97 planes in its fleet and 430 aircraft on order from Airbus. The company has said it would use the funds raised by the IPO to pay off a few aircraft leases and to expand.