IndiGo Celebrates 18th Anniversary with New Initiatives

IndiGo Celebrates 18th Anniversary with New Growth Initiatives

By Author

Published on August 11, 2024

IndiGo, India's largest airline and one of the biggest globally, recently marked its 18th anniversary with a series of announcements signaling the next phase of its growth. The celebration, held at the Bharat Mandapam in New Delhi, was attended by key figures from the travel industry, partners, investors, and the airline’s leadership.

Over the past 18 years, IndiGo has transformed air travel in India by connecting 88 domestic destinations with over 400 routes, making air travel accessible to millions, including first-time flyers. Internationally, the airline has expanded its reach to 33 cities across more than 100 routes.

As part of its growth strategy, IndiGo has placed a record order for 500 new aircraft, including the Airbus A321-XLRs expected to enter service in 2025 and the widebody A350-900s scheduled for delivery in 2027. This expansion plan aims to double the airline's scale by the end of the decade.

To enhance customer experience, IndiGo introduced several new initiatives. The airline launched 'IndiGoStretch,' a new business class service available on 12 metro-to-metro routes, starting with the Delhi-Mumbai sector. This service features premium seating and other amenities aimed at attracting business travelers.

IndiGo also unveiled its much-anticipated loyalty program, 'IndiGo BluChip.' This program is designed to reward frequent flyers with benefits based on their spending, including real-time tier upgrades and lifetime validity for active members. The full program is set to launch in September 2024, with early registration opening immediately.

Pieter Elbers, CEO of IndiGo, reflected on the airline’s journey, stating, "On our 18th anniversary, it’s time to reflect on the wonderful and incredible IndiGo journey of giving wings to the nation. I would like to deeply thank the 600 million customers since inception that choose to fly IndiGo and all my colleagues who work so relentlessly and professionally serving our customers. Together we are building the IndiGo growth story realizing India by IndiGo.

As India’s leading carrier, we are constantly looking at ways of improving our service offering for our millions of our customers. With India’s soaring economy and the evolving aspirations of the Indian society, it’s time for us to redefine air travel once again and provide our evolving customers more benefits as they travel the world on us.

I am pleased to announce a new era of our IndiGo journey with the launch of IndiGoStretch – a tailor- made business product; and IndiGo BluChip – our much-awaited loyalty program. In addition, we have also launched a completely refreshed website and app with several features to make our customers experience more hassle-free. We are excited with this new era of IndiGo’s journey as we will continue to deliver on our core promises of being on-time, offering affordable fares, and delivering a courteous and hassle-free travel experiences across our unparalleled network."

In addition to these offerings, IndiGo has revamped its website and mobile app to provide a more user-friendly experience, further enhancing its service for customers.

Image Credit: IndiGo Press Note

ITC Hotels Demerger Could Lead to Passive Outflow of USD 180 Million: Nuvama

By Nishang Narayan

Published on January 8, 2025

Following the demerger of ITC Hotels from its parent company, ITC Ltd., domestic brokerage firm Nuvama has predicted a passive outflow of approximately USD 180 million. This corporate action will have a notable impact on major indices such as Nifty50 and Sensex, with expected passive outflows of USD 110 million and USD 70 million, respectively.

Nuvama's analysis suggests that assuming ITC’s share price remains stable around INR 260 at the time of exclusion, the passive flow for Nifty50 will amount to USD 110 million (with a weight of 23 basis points), while Sensex will experience an outflow of USD 70 million (with a weight of 28 basis points).

A special price discovery session was held to adjust ITC’s share price, resulting in an INR 26 adjustment on NSE and INR 27 on BSE as the stock began trading ex-demerger on January 6. The demerger ratio of 1:10 (one share of ITC Hotels for every 10 shares of ITC Ltd.) has led to the valuation of ITC Hotels at approximately INR 260 on the Nifty50 indices and INR 270 on BSE indices.

Until ITC Hotels is officially listed separately, it will be treated as a "dummy entity" with a fixed price, and the stock will be held at this value temporarily. According to Nuvama, ITC Hotels is expected to be listed within the next 30-40 days. Following the listing, ITC Hotels will be removed from all NSE and BSE indices at its last traded price, effective at the opening on the listing date, with a three-day adjustment period. If the stock hits circuit limits, the exclusion will be postponed by two trading days for each occurrence.

Nuvama also noted that ITC Hotels may qualify for inclusion in the MSCI Global Small Cap Indexes, but this will only happen if the stock is listed within 20 working days after the record date of the demerger.

ITC Demerger: Special Session Held to Discover ITC Hotels Share Price

By Nishang Narayan

Published on January 7, 2025

In a landmark move, ITC Ltd has begun its long-awaited demerger of ITC Hotels, with BSE and NSE conducting special pre-open trading sessions today to facilitate price discovery for the hotel business. This strategic restructuring allows ITC Hotels to operate independently, focusing exclusively on hospitality.

During the session, ITC Hotels' share price will be computed using ITC Ltd's closing and adjusted prices, incorporating a 1:10 demerger ratio. Analysts predict the shares to list between ₹150 and ₹200, with some forecasts suggesting a range of ₹200 to ₹300 based on valuations and growth prospects.

As of today, ITC Ltd's 36 lakh shareholders will receive one ITC Hotels share for every 10 ITC shares held. While ITC Hotels shares won’t officially list yet, a dummy ticker will represent the stock on indices like Nifty and Sensex until formal listing in a few weeks.

ITC retains a 40% stake in the demerged entity, with the remaining 60% distributed among shareholders. Analysts from Ambit Capital and Nomura see this as a step toward value unlocking, with ITC Hotels poised to capitalize on India's luxury hospitality sector. Asset-light models and a pure-play focus will drive future growth and profitability.

ITC’s stock price is expected to adjust downward by ₹22–₹25 due to the demerger. Experts believe this could be a temporary dip, providing an opportunity for retail investors to accumulate shares of ITC Hotels. Meanwhile, ITC Ltd aims to sharpen its focus on its high-margin FMCG business, which has seen substantial EBITDA growth.

Nomura analyst Mihir P Shah remarked, "The demerger unlocks significant value, allowing ITC Hotels to access equity and debt markets for future growth while benefiting from India's luxury hospitality sector’s re-rating."

While ITC shares ended last week at ₹482 on the BSE, underperforming over the past year, this demerger sets the stage for a potential re-rating as ITC pivots toward a leaner business model with enhanced focus on profitability.

(Disclaimer: The views and opinions expressed by experts are their own and do not represent the views of Hospitality News India.)

ITC Increases Stake in Oberoi Group and Leela Mumbai Ahead of Hotel Arm Demerger

By Nishang Narayan

Published on December 20, 2024

In a strategic move ahead of the January 1, 2025, demerger of its hotel business, ITC has increased its stakes in two major players in the Indian hospitality industry. ITC has raised its shareholding in EIH Ltd, the parent company of Oberoi Hotels, to 16.13%, and in HLV Ltd, which owns The Leela Mumbai, to 8.11%.

As of September 2024, ITC held a 13.69% stake in EIH. By acquiring an additional 2.44%, equivalent to 1,52,32,129 equity shares, ITC now commands a 16.13% stake in the company. Similarly, ITC’s stake in HLV Ltd has increased from 7.58% to 8.11%, following the purchase of 34,60,829 equity shares.

In a regulatory filing, ITC announced, “...the company today has acquired 2.44 percent of the share capital (comprising 1,52,32,129 equity shares of INR 2 each) of EIH Ltd and 0.53 percent of the share capital (comprising 34,60,829 equity shares of INR 2 each) of HLV Ltd, from Russell Credit Ltd, a wholly owned subsidiary of the company.”

This move is seen as a part of ITC’s preparation for the demerger of its hotel business, ITC Hotels, from its parent group. The demerger, set to take effect from January 1, 2025, is expected to unlock greater value for ITC’s stakeholders and enhance its focus on core operations.

With the increased stakes, ITC is cementing its presence in the premium and luxury hospitality segments, strengthening its relationship with iconic brands like Oberoi Hotels and The Leela Mumbai.

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IndiGo Celebrates 18th Anniversary with New Growth Initiatives

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ITC Hotels Demerger Could Lead to Passive Outflow of USD 180 Million: Nuvama

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ITC Demerger: Special Session Held to Discover ITC Hotels Share Price

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ITC Increases Stake in Oberoi Group and Leela Mumbai Ahead of Hotel Arm Demerger

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