The initial public offer (IPO) of InterGlobe Aviation Ltd, which runs India’s top air carrier IndiGo, was fully covered on day two with oversubscription of 55 per cent, data collated by stock exchanges showed.
Qualified institutional buyers (QIBs), who led the show on day 1 when the firm hit 87 per cent subscription mark, remained the driver of the issue on the second day too.
QIBs bid for over five times the shares reserved for them at the end of day two, while non-institutional investors and retail investors remained unmoved by the issue. The two set of investors bid for just 4 per cent and 18 per cent, respectively, of the portions reserved for them.
Previously, the company raised Rs 832 crore (approximately $128 million) from a groups of investors including sovereign funds of Norway, Singapore and Kuwait, who came as anchor investors.
Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund; Singapore’s GIC, and Kuwait Investment Authority together put in Rs 113 crore ($17 million) as part of the Rs 832 crore that IndiGo raised through anchor investors. GIC and the Norwegian fund are two of the most active sovereign funds in Indian public equities.
Several other asset management firms also participated in the anchor allotment including funds managed by Fidelity, Blackrock, Acacia, HDFC and Merrill Lynch.
For more details on the IPO, click here.