The promoters of InterGlobe Aviation Ltd, owner of India’s most profitable airline, IndiGo, have reduced the number of shares they initially planned to put up for sale in a 3,200 crore initial public offering (IPO).

In a note to prospective investors, investment bankers said the offer for sale of the airline’s stock is only up to 22.82 million equity shares, 3.29 million shares fewer than originally planned.

InterGlobe Aviation, the owner of the only airline to be consistently profitable since 2009, was previously offering as many as 26.11 million shares in the IPO, according to the terms of the deal.

Of these, 9.62 million shares were supposed to be sold by the promoters.

That number has now been reduced to 6.33 million shares.

Rakesh Gangwal will now only sell 2.74 million shares via a secondary offer, against the original plan of 3.75 million equity shares. Another promoter, Shobha Gangwal, will now sell only 1.16 million shares instead of 2.22 million and The Chinkerpoo Family Trust (trustee: Shobha Gangwal and JP Morgan Trust Co. of Delaware) will sell only 2.42 million shares, against the original plan of 3.63 million.

According to the new plan, the IPO size will be down by 200-250 crore from the original plan of 3,200 crore.

The price band and other terms, including fresh issue of shares, remain unchanged from the earlier plan.

The bankers did not disclose the reasons behind scaling back the size.

IndiGo will launch its IPO on 27 October; it will be the largest share sale in the country since 2012 and give India’s biggest airline a valuation of around 26,000 crore.

The airline has fixed a price band of 700-765 per share for the public issue that will close on 29 October.

The airline, founded by travel and aviation veterans Rahul Bhatia and Rakesh Gangwal, is seeking a pre-money equity valuation of about 24,059 crore at the lower end of the price band and 26,293 crore at the higher end of the band.

Bankers to the IndiGo public issue are Citigroup Global Markets India Pvt. Ltd, JP Morgan India Pvt. Ltd and Morgan Stanley India Co. Pvt. Ltd. The other bankers to the issue are Barclays Bank Plc, Kotak Mahindra Capital Co. Ltd and UBS Securities India Pvt. Ltd.

India has the fastest growing domestic aviation market in the world, ahead of China and the US. The country’s domestic air passenger demand soared 20.2% in the eight months ended 31 August compared with the year-ago period, according to the International Air Transport Association, owing to more flights, fare cuts and faster economic growth.

IndiGo had a 36.5% share of the domestic air travel market in September, according to data published by the Directorate General of Civil Aviation (DGCA) on Tuesday. Total passenger traffic in January-September rose to 59 million from 49.14 million in the year-ago period, an increase of of 20.10%, DGCA said.

India is one of the most under-penetrated aviation markets in the world, with around 350 aircraft for domestic service, which is half the size of low fare airline Southwest Airlines Co. of the US.

IndiGo had total debt of 3,912 crore as of 31 August—all of it aircraft-related debt. A portion of IPO proceeds will be used to reduce this debt.

“We could have avoided IPO route to raise funds. But the publicly listed status will put a lot more responsibility on the management by creating simulated paranoia to perform better," Aditya Ghosh, president and whole-time director of IndiGo, said on Monday.

He also added that there was no big requirement for capital expenditure for the company. All the capital expenditure is met by internal accruals, boosted by its profitability.

InterGlobe paid an unusually high dividend to existing investors in June, leaving the company with a negative net worth of 139.4 crore. As of March-end, it had a positive net worth of 426 crore. The company’s decision to more or less empty its coffers ahead of its IPO hasn’t gone down well with investors.

The company has a fair response to the criticism—that while its net worth is negative as of 30 June 2015, it will soon be back to positive territory thanks to its regular profit accretion

InterGlobe Aviation posted a record 640.43 crore in quarterly profit for the three months ended 30 June. The airline notched up the profit on revenue of 4,317.19 crore for the quarter, according to the company’s share sale prospectus, which didn’t disclose profit and revenue for the year-ago period.

The airline has reported Ebitdar (earnings before interest, tax, depreciation, amortization and rentals) of 1,577 crore, with an Ebidtar margin of 37%.

In September, IndiGo reported a record net profit of 1,304 crore for the year ended 31 March—a fourfold jump over the previous year—as it benefited from higher passenger traffic and lower jet fuel costs ahead of the initial share sale. The company saw a 25% rise in revenue to 14,320 crore in 2014-15 from 11,447 crore in the previous year.

The airline is also focusing on ancillary revenue (by selling food onboard), which accounts for 11% of total revenue. “Ancillary revenues are high-margin business for airlines. For last four years, our ancillary revenues have grown at a compounded annual growth rate of 38%," said Ghosh.

For the quarter ended 30 June, referring to its liquidity position, Ghosh said IndiGo has generated cash of 873 crore and had cash on hand of 3,675 crore as on 31 August, which represents 24% of its total revenue in the last fiscal year.