Indigo trades below IPO price
City: 

Rising crude oil prices have taken a toll on airline companies, and Indigo operator Interglobe Aviation, has suffered the most.

The shares of Interglobe Aviation now trades below its issue price of Rs 765 and on Wednesday the shares closed at Rs 745.75 on the BSE and at Rs 742 on the NSE.

Last week Interglobe Aviation’s share price had hit a 52-week low of Rs 697 on the BSE and Rs 691 on the NSE in tandem with the surge in Brent crude oil price to $86.74 per barrel.

Problems faced by the airline’s newly acquired aircraft Airbus A320neo and delay in delivery as well as the exit of key persons like chief executive Aditya Ghosh also had a negative impact on its share price.

The stock recovered a bit and gained 2.98 per cent on Wednesday to close at Rs 745.75, however, it is down 50.93 per cent from its 52-week high price of Rs 1,520.

Such a big fall in the share price has come as the airline operator is facing multiple headwinds, both external and internal.

The weakening of the rupee and the surge in crude oil prices have raised the cost of operations for all the air carriers.

The stocks of other two listed aviation companies, Jet Airways and Spicejet, have declined even more from their 52-week high prices.

Jet Airways shares have plunged to a 52-week low of Rs 163 earlier. It closed 7.78 per cent up on Wednesday at Rs 189.15 but far below its 52-week high price of Rs 883.65.

Spicejet’s shares plunged to Rs 60.60 before recovering and closed 4.37 per cent up at Rs 68.10 on Wednesday but far below its 52-week high price of Rs 156.25.