India's biggest airline by market share, IndiGo reportedly plans to make most of the flourishing budget air travel. The company is preparing to file a draft prospectus by May for a stock listing to raise $300 million to $400 million, claim reports.

However, the timing of initial public offering has not been set.

IndiGo is owned by hospitality and travel company InterGlobe Enterprises and has assembled a decent commercial base. In contrast, rivals like SpiceJet and Air India are at loss mainly because of high operating costs and hard competition.

IndiGo was founded in 2006 by ex-U.S. Airways chief executive Rakesh Gangwal and travel entrepreneur Rahul Bhatia. Since then, the company has raised its stake of India's overall domestic air travel market to a third. Because of its success story, IndiGo is an attractive investment company.

However, IndiGo had its share of losses. In the last financial year, its pre-tax profit cut up to 4.78 billion rupees ($76 million).

Reports claim that the company has chosen Morgan Stanley, Citigroup, JP Morgan Chase, UBS, Kotak Investment Banking and Barclays as lead managers for the listing.