The Inter-Globe Aviation’s anchor book was opened on Monday, and over a quarter of its subscription is by the marquee investors taking part for the first time in the Indian IPO. They have invested in the largest and most money-spinning budget airlines, IndiGo in the world. The list of first time investors comprise of a long term fund from Neuberger Berman, APG, Davis International Fund, Harvard Management Company and Hutchin Hill. They have invested via a P-note entity, claim two people familiar with the same.
The other names in the investors list include Columbia Threadneedle that is back after three years, and Acacia Partners LP that invested in the 2012’s MCX IPO. Most of these investors are those who have invested in the international low fare carriers. Neuberger has invested in Southwest Airlines that is the world’s largest budget airline, EasyJet, JetBlue and Spirit Airlines. Also, APG invested in Air Arabia, Ryanair and EasyJet. The same way, Davis has invested in JetBlue, Spirit and Southwest.
Columbia Threadneedle has managed to gain assets of $471 billion across the developed as well as emerging market equities, asset allocation solutions, alternatives and fixed incomes. In 2014, Neuberger Berman managed assets that are worth $251 billon and Harvard Management manages the university’s $37 billion financial assets and endowment. RCG runs the Sequoia Fund and it manages assets over $30 billion.
This clearly indicates that the airline, IndiGo is roping in new names in order to invest in the corporate sector in India. Also, the names show that the investors believe in the IndiGo’s business model as well the growth story of India, stated the Chairman and MD of Prime Database that tracks the primary markets, Prithvi Haldea.
On the whole, 43 investors have subscribed to the pre-issue sale of IndiGo. The anchor book came to a total of Rs 832 crore. The airline company carries a value of $4.25 billion that translates to Rs 27,500 crore.