Airline IPOs in India allow companies to raise capital from the public for expansion, debt reduction, or modernization. Notable IPOs like InterGlobe Aviation Ltd reflect the sector’s growth potential, offering investors opportunities to participate in the dynamic and fast-growing aviation market.
Content:
- Overview of the Airline IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Airline Sector IPOs
- Disadvantages of Investing in Airline Sector IPOs
- Role of the Airline Industry in the Economy
- How to invest in Airline IPOs?
- Future Outlook of Airline IPOs in India
- Airline IPOs in India – FAQ
Overview of the Airline IPOs in India
The airline sector in India has witnessed key IPOs like InterGlobe Aviation Ltd (IndiGo) and Global Vectra Helicorp Ltd. These IPOs marked milestones, reflecting the industry’s growth potential amid rising travel demand and economic development.
Indian airline IPOs attract investors seeking exposure to a rapidly expanding aviation market. Companies leverage IPO proceeds for fleet expansion, infrastructure development and debt reduction, enhancing operational capacity and profitability in one of the world’s fastest-growing aviation markets.
IPO Fundamental Analysis
InterGlobe Aviation Ltd
InterGlobe Aviation Ltd posted remarkable growth in FY24, achieving sales of ₹68,904 crores compared to ₹54,446 crores in FY23. With a strong operating profit and EBITDA, the company exhibits financial stability, despite contingent liabilities. A detailed breakdown highlights its fiscal trends and performance.
Revenue Trend: InterGlobe Aviation Ltd sales grew by ₹14,458 crores, from ₹54,446 crores in FY23 to ₹68,904 crores in FY24, reflecting a 26.56% increase, supported by efficient cost management and improved demand.
Equity and Liabilities: Equity capital stood at ₹385.98 crores in FY24, while reserves improved significantly to ₹1,610 crores from a deficit of ₹6,686 crores in FY23. Total liabilities increased to ₹82,225 crores from ₹59,170 crores.
Profitability: Operating profit soared to ₹16,318 crores in FY24 from ₹6,495 crores in FY23, with an operating profit margin of 22.91%, up from 11.62%. Net profit rebounded strongly to ₹8,172 crores, compared to a loss of ₹305.79 crores in FY23.
Earnings per Share (EPS): EPS surged to ₹211.73 in FY24, recovering significantly from a loss of ₹7.93 in FY23, showcasing robust earnings growth and effective operational efficiency.
Return on Net Worth (RoNW): The RoNW saw a dramatic improvement due to positive reserves, indicating a strong recovery in shareholder equity and profitability.
Financial Position: Total assets rose to ₹82,225 crores in FY24 from ₹59,170 crores in FY23. Non-current assets reached ₹46,371 crores, while current assets increased to ₹35,853 crores, reflecting efficient capital utilization.
Global Vectra Helicorp Ltd
Global Vectra Helicorp Ltd demonstrates steady financial performance with sales of ₹502.73 crore in FY24, a 22% increase from ₹411.12 crore in FY23. Despite challenges, the company shows improvements in operating margins and maintains a stable asset base, reflecting resilience in operations.
Revenue Trend: Sales increased to ₹502.73 crore in FY24 from ₹411.12 crore in FY23, showing a growth of ₹91.61 crore. Operating profit also improved to ₹85.76 crore from ₹41.42 crore during the same period.
Equity and Liabilities: Equity capital remained constant at ₹14 crore. Reserves decreased to ₹7.81 crore from ₹14.10 crore, while total liabilities grew to ₹927.78 crore in FY24 from ₹768.45 crore in FY23, mainly due to higher non-current liabilities.
Profitability: Net profit turned positive at ₹1.21 crore in FY24, recovering from a loss of ₹16.63 crore in FY23. Operating profit margins improved significantly to 16.35% in FY24 from 9.25% in FY23, reflecting better cost management.
Earnings per Share (EPS): EPS improved to ₹0.86 in FY24, recovering from a negative ₹11.88 in FY23. This indicates a turnaround in the company’s profitability metrics over the past year.
Return on Net Worth (RoNW): RoNW remained modest as reserves declined to ₹7.81 crore in FY24, reflecting the ongoing financial recovery from previous years.
Financial Position: Total assets increased to ₹927.78 crore in FY24 from ₹768.45 crore in FY23. Non-current assets grew to ₹667.44 crore, while current assets increased to ₹260.33 crore, indicating stronger asset utilization.
IPO Financial Analysis
InterGlobe Aviation Ltd
| FY 23 | FY 22 | FY 21 | |
| Sales | 68,904 | 54,446 | 25,931 |
| Expenses | 52,587 | 47,951 | 25,384 |
| Operating Profit | 16,318 | 6,495 | 547.33 |
| OPM % | 22.91 | 11.62 | 2.05 |
| Other Income | 2,327 | 1,435 | 725.6 |
| EBITDA | 18,644 | 7,930 | 1,273 |
| Interest | 4,169 | 3,132 | 2,358 |
| Depreciation | 6,426 | 5,103 | 5,069 |
| Profit Before Tax | 8,049 | -304.39 | -6,154 |
| Tax % | -1.53 | 0 | 0 |
| Net Profit | 8,172 | -306 | -6,162 |
| EPS | 211.73 | -8 | -160 |
* Consolidated Figures in Rs. Crores
Global Vectra Helicorp Ltd
| FY 23 | FY 22 | FY 21 | |
| Sales | 503 | 411 | 332 |
| Expenses | 417 | 370 | 286 |
| Operating Profit | 86 | 41 | 45.58 |
| OPM % | 16.35 | 9.25 | 12.22 |
| Other Income | 22 | 36 | 40.98 |
| EBITDA | 108 | 78 | 87 |
| Interest | 34 | 21 | 16 |
| Depreciation | 72 | 75 | 78 |
| Profit Before Tax | 2 | -18.41 | -8 |
| Tax % | 48.39 | 10 | 29 |
| Net Profit | 1 | -17 | -5 |
| EPS | 0.86 | -12 | -4 |
* Consolidated Figures in Rs. Crores
About the Company
InterGlobe Aviation Ltd
InterGlobe Aviation Ltd, operating as IndiGo, is India’s largest airline by market share. Known for its low-cost carrier model, the company offers domestic and international flights, focusing on punctuality, affordability and customer satisfaction to serve millions of passengers annually.
With a vast fleet and a strong network, InterGlobe Aviation has revolutionized air travel in India. Its efficient operations, extensive connectivity and emphasis on operational reliability have established it as a dominant player in the aviation industry.
Global Vectra Helicorp Ltd
Global Vectra Helicorp Ltd is a leading provider of helicopter services in India, catering to the oil and gas industry, corporate charters and aerial services. The company specializes in offshore and onshore operations, offering efficient and reliable aviation solutions.
With a robust fleet and significant expertise, Global Vectra Helicorp supports critical industries by ensuring safe and timely transport. The company’s commitment to operational excellence has helped it maintain a prominent position in the aviation sector.
Advantages of Investing in Airline Sector IPOs
The main advantage of investing in airline sector IPOs is gaining exposure to a high-growth industry benefiting from rising travel demand, innovation and global connectivity. IPO investments offer potential capital appreciation as airlines expand operations and enhance profitability.
- High Growth Potential: Airlines benefit from increasing travel demand and global connectivity, offering investors potential capital appreciation as the industry grows and expands its operations.
- Industry Innovation: Technological advancements and operational efficiencies in the airline sector can enhance profitability, making IPO investments attractive for long-term gains.
- Economic Indicators: Airline industry performance often reflects broader economic trends, providing investors with opportunities to benefit from economic recoveries or booms.
- Global Diversification: Investing in airline IPOs allows exposure to international markets, diversifying portfolios and reducing dependence on a single economy.
Disadvantages of Investing in Airline Sector IPOs
The main disadvantage of investing in airline sector IPOs is vulnerability to external factors like fuel price volatility, economic downturns and regulatory challenges. These risks can significantly impact profitability, making airline stocks more unpredictable compared to other industries.
- Market Volatility: Airline stocks are sensitive to external factors like fuel price fluctuations and geopolitical events, increasing risk.
- Economic Dependency: Airlines heavily depend on economic conditions; during downturns, reduced travel demand can significantly impact profitability.
- High Operational Costs: Fixed costs like aircraft maintenance and regulatory fees reduce margins, exposing IPO investments to financial instability.
- Regulatory Challenges: Frequent regulatory changes in safety, environmental policies, or taxation create uncertainties, impacting long-term airline sector profitability.
Role of the Airline Industry in the Economy
The main role of the airline industry in the economy is connecting regions, promoting trade, boosting tourism and creating jobs. It facilitates global integration, enhances logistics efficiency and contributes significantly to GDP growth, especially in emerging and developed markets alike.
- Boosts Trade: Airlines facilitate global trade by enabling faster movement of goods and enhancing supply chain efficiency across regions.
- Promotes Tourism: The industry connects international destinations, driving tourism growth and contributing significantly to economic activity and revenue.
- Creates Jobs: Airlines, directly and indirectly, employ millions, supporting allied sectors like hospitality, transportation and logistics, bolstering local economies.
- Drives Integration: Air travel bridges distances, fostering cultural exchange, economic integration and diplomatic relationships, contributing to global connectivity and cooperation.
How to invest in Airline IPOs?
To invest in airline IPOs, open a demat account with Alice Blue. Use the ASBA facility linked to your bank account to apply for IPOs like InterGlobe Aviation Ltd or Global Vectra Helicorp Ltd.
Track upcoming IPO announcements, read the prospectus for company insights and submit your application through your broker’s platform. Ensure funds are blocked in your bank account for allocation as per allotment rules.
Future Outlook of Airline IPOs in India
The future of airline IPOs in India looks promising, driven by increasing passenger traffic, government support for infrastructure and robust economic growth. Companies aim to raise capital to meet rising demand and modernize operations.
However, challenges like fuel price volatility and intense competition persist. Investors are likely to focus on efficient, financially stable airlines with innovative growth strategies, making IPOs a key avenue for capitalizing on the industry’s long-term potential.
Airline IPOs in India – FAQ
An Airline Initial Public Offering (IPO) occurs when an airline company offers its shares to the public for the first time, allowing investors to purchase ownership stakes. This process helps airlines raise capital for expansion, debt reduction, or other corporate purposes.
Notable Indian airlines that have launched IPOs include InterGlobe Aviation Ltd (IndiGo) and Global Vectra Helicorp Ltd. These companies offered shares to the public, enabling investors to participate in the aviation sector’s growth.
The main significance of airline IPOs in the Indian stock market lies in diversifying investment opportunities, reflecting the aviation sector’s growth and attracting capital for infrastructure development. They also indicate investor confidence in the industry’s potential and economic impact.
InterGlobe Aviation Ltd IPO, the parent company of IndiGo, is the largest airline IPO in India. It raised significant capital, underscoring investor interest in the country’s aviation sector.
To invest in airline IPOs, open a demat account with a broker like Alice Blue. Monitor upcoming IPO announcements, apply through the broker’s platform using the ASBA facility linked to your bank account and ensure sufficient funds are available for the application.
Airline IPOs can be suitable for long-term investment, depending on the company’s financial health, growth prospects and industry conditions. Investors should assess factors like fuel prices, regulatory environment and competition before committing to long-term holdings.
Airline IPOs have the potential to be profitable, but returns depend on market conditions, company performance and external factors like economic cycles and fuel costs. Investors should conduct thorough research and consider risks before investing.
As of now, there are no confirmed upcoming airline IPOs in India. Investors should stay updated through financial news platforms and official announcements for any future offerings.
Detailed reviews and analyses of airline IPOs are available on financial news platforms, market analysis sites and brokerage reports. Alice Blue provides insights through its research tools, helping investors assess company performance, industry trends and IPO potential for informed decision-making.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
