Refer to the Chapter Opener on the InterGlobe Aviation’s Initial Public Offering. Briefly comment on the wide range of questions raised there.

Negative Networth Indigo Airlines Public Offering Interglobe Aviation, which owns IndiGo, is a low-cost airline headquartered at Gurgaon. It is the largest airline in India in terms of passengers flown with market share of 36-39% (2016). This consistently profitable airline caused a bit of a stir during its initial public offering (IPO) in October 2015. In spite of making a net profit of 640 crore during the June quarter, IndiGo reported negative networth of minus 139 crore as on 30th June. A big reason for this: 1,103 crore dividend that the promoters decided to pay themselves ahead of the offer. In accounting terms, Net Worth is the total owner's capital invested in a company. Refer to Section 2.1 wherin the term is introduced; a company's networth is a key indicator of its financial health. Stereotypically, chronically loss-making companies carry negative networth in their balance sheet. This is why even the statutory auditors examining a company's books of accounts are required to make a special mention to shareholders in their report, if they find that the company has run up a negative networth in any accounting period.