Shares of InterGlobe Aviation jumped as much as 4.4% in Wednesday's trade as the company has reported a net profit of ₹552 crore in the September 2017 quarter, almost four times as much as it had reported in the year-ago period.
Following a positive open at Rs 1,290 against the previous close of Rs 1,244.30, the company shares touched an intraday high of Rs 1,298.30 and a low of Rs 1,228.
Elara Capital analysts expect IndiGo's domestic market share to rise to 43 per cent from the current 40 per cent by FY20.
Ten out of 16 brokerages have rated the stock at “buy” or higher, four “hold” and two rate at “sell"; median target price is 1,350, according to Thomson Reuters Eikon data.
Earlier in September, InterGlobe Aviation Ltd, the owner of IndiGo, had said its board had approved issuance of equity shares up to 33.6 million to qualified institutional buyers.
The placement includes issue of fresh equity shares of up to 22.4 million and offer for sale of up to 11.2 million shares by promoters, including Rakesh Gangwal and Chinkerpoo Family Trust.
As of June 30, Gangwal and Chinkerpoo Family Trust owned 16.83 per cent and 15.59 per cent stakes in the company respectively.
In May, IndiGo had announced plans to launch turbo-prop operations by the end of calendar 2017. The carrier, which only flies the Airbus A320 family, signed a term sheet with French-Italian aircraft maker ATR for purchase of 50 ATR 72-600s worth $1.3 billion, with the flexibility to reduce the number based on certain terms.
(With inputs from Reuters)