Jet Airways IPO

Jet Airways, India's largest private airlines issued IPO for the first time in the year 2005. Jet Airways IPO was launched by JET Airways Ltd to promote its brand name, raise capital and pay-off outstanding debts.

Initial public offering also known as IPO, is the sale of stocks (for the first time), of a private company to the public. The main objective of such issuance of IPOs is to accumulate a substantial and targeted amount for either opening -up of a company or expansion of an existing company. An IPO pools investment of stock market investors and invests in the building and operation of the said company. The shares held by the investors give them rights of the company and to its future profits. The process of underwriting helps to determine the type of security to issue, offer price and best time of introduction into the market.

Details of Jet Airways IPO

The issue price of Jet Airways IPO was fixed at Rs 1,100 per share. Soon after the introduction of the Jet Airways IPO, it was subscribed 16.2 times. The bidding for the 100% book-built issue of the IPO of the Jet Airways was opened on 18th February 2005 and closed on 24th February 2005. The IPO of the Jet Airways offered 17.27 million shares. Alternatively, it also offered 20% of the expanded equity. The Jet Airways IPO, was subscribed 1.5 times in the first 10 minutes of introduction. The IPO had a price range of Rs 950 to Rs 1,125. The shares were then listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Jet Airways reserved 1,200,000 equity shares for its employees at the offer price and 16,066,801 equity shares were kept open for subscription by the general public. The main objective of the Jet Airways IPO is to enhance the brand name, raise capital and pay-off outstanding debt.