The initial public offering (IPO) of InterGlobe Aviation Ltd, which runs top Indian carrier IndiGo, was oversubscribed more than five times on the final day thanks to non-retail investors.
Qualified institutional buyers (QIBs) bid for almost 18 times the issue reserved for them. The QIBs had led the show on the first day when the firm hit 87 per cent subscription mark and remained the driver of the issue on the second day, too.
Non-institutional investors, including high net-worth individuals and corporate investors, bid for three-and-a-half times their portion of the issue, after remaining on the sidelines for the first two days.
Retails investors, however, remained unmoved with just four-fifths of their portion covered at the end of the three-day issue.
Previously, the company raised Rs 832 crore (about $128 million) from a group of investors, including sovereign funds of Norway, Singapore and Kuwait, who came in 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 amount 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.