A very good realistic interview post IPO closing.
You are going to have to deliver quarter on quarter because you are going to be a listed entity. Let me talk to you about specifics. If you can take us through the kind of applications that you have got as far as the QIB portion is concerned. Can you take us through the number of applicants that actually came in, in the QIB category?
A: I know that the anchor book had more than 40 investors. QIB of course saw a huge amount of response as you said, close to 20 times subscribed. More than just the numbers what we feel is sense of pride and the kind of investors who have now come in either after a long period of time into India or for the very first time in an IPO in India. So, it is just the quality of people and these are some of the biggest players, some of the most sophisticated investors from around the world who have seen a lot of companies around the world and some in India as well. That is what kind of makes us feel good with what we have been able to do and once again a lot of trust in us now, lot of faith in us now, we have got to kind of be able to deliver on that faith and trust.
Possibly because many of these people actually have holdings in some of the very best airlines around the world, some of the most profitable airlines around the world. They have had holdings there for a long period of time.
India is a complex story. The airline business in India has been very different from what you see in many other parts of the world. In that for someone to really appreciate what IndiGo is doing, how IndiGo is just so structurally different from anybody else. However as we become a listed company, as people start watching us more carefully, as people start seeing us on delivering on some of the things that we have been saying in the roadshows, I think the understanding for the airline business and more importantly how IndiGo is just so very unique and different from everybody else is something that will grow in on the Indian investor as well.
What kind of demand environment are you expecting. We are at the start of the festive season now. In the short term, medium term and in the long term all kinds of estimates have been put out by IATA, CAPA, so on and so forth about what the long term promise looks like. But let me start by asking you about the short term demand environment, the medium term and then talk about the long term prospects.
A: We expect it to be in the kind of late teens. So, 18-20 percent year-on-year (Y-o-Y) for the next few quarters just as it has been in the past. Going up to 9.5 percent Compound Annual Growth Rate (CAGR) over the next 20 years but what I am saying is not rocket science. You look at India, look at the size of India, look at how underpenetrated the aircraft market is. A country of 1.3 billion people, less than 400 commercial airplanes in this country. So, there is going to be huge amount of demand. It is for people like us to be able to take advantage of that opportunity, execute to that perfection and add more and more airplanes, more and more capacity so that more people can fly and hopefully if cost structures start coming down even further then the propensity of travel increases even more and then the growth takes an even bigger kicker.