IndiGo heads towards $400 million IPO as air travel booms

India's biggest carrier, IndiGo, is preparing to file documents for a stock listing to raise $300 to $400 million, two sources with knowledge of the plans said, as it looks to cash in on a booming air travel market.

IndiGo, owned by hospitality and travel company InterGlobe Enterprises, has remained profitable in the last two years, avoiding much of the turbulence to hit rival Indian carriers.

IndiGo has picked Citigroup, Kotak Investment Bank, Morgan Stanley and J.P. Morgan as lead managers for the listing, with UBS and Barclays also involved, the two sources said.

IndiGo will file its draft prospectus by the end of May, two sources said.

The timing of the market debut itself, however, is not set, a separate source said, and will depend on market conditions. IndiGo was not immediately available for comment.

Image: Passengers stand in a queue to board an Indigo Airlines' flight bound for New Delhi at the Srinagar airport.

Photograph: Adnan Abidi/Reuters