Tuesday, July 21, 2015

Before filing IPO, IndiGo pays dividend to promoters

Mumbai: Eleven days before filing the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 30, 2015 to raise $400 million through an initial public offer (IPO), the board of directors of InterGlobe Aviation Ltd. that owns low-cost airline IndiGo approved the payment of final interim dividend of Rs.99.7 crore to promoters for 2014-15.

The board also approved a dividend payment of Rs.1,002.90 crore to the promoters for 2015-16 as well.

This move has evoked mixed reaction from analysts and experts who spoke on the condition of anonymity. While a section finds this perfectly normal for a private company, others feel that the money should have stayed in the company for its expansion and capital requirement purposes.
20/07/15 Lalatendu Mishra/The Hindu
To Read the News in full at Source, Click the Headline