IndiGo, India's only consistently profitable airline, is selling shares at between 700 rupees ($11) and 765 rupees each and plans to use the money raised to expand operations and trim debt.
The share sale will run for three days and is the largest in India since December 2012, when telecom infrastructure provider Bharti Infratel raised 41.7 billion rupees, equivalent to $638 million today.
IndiGo's flotation comes two weeks after Cafe Coffee Day raised $176 million in a share offering as India's long-suffering IPO market enjoys a mini-resurgence.