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| Saturday, 20 November 2004 |
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Air Deccan to raise $60 mn BANGALORE, Air Deccan, India's first no-frills low-cost airline, plans to raise $60 million (Rs 2.7 billion) through private equity to fund its fleet-cum-operational expansion plans next year. The Bangalore-based private airlines, operating on trunk and feeder routes across the country, has appointed Britain-based N.M. Rotchschild, an investment advisory bank, as its investment arm for the first round of funding next month. "We had an overwhelming response from reputed financial institutional investors (FIIs) during road shows conducted overseas in recent weeks," Air Deccan CEO Captain G.R. Gopinath told IANS here in an interview. "We have short-listed six to seven bidders to offload 25 per cent of our equity at a premium to be worked out after completing the valuation process." With an authorised capital of Rs.1 billion ($22 million), the company has a paid-up equity of Rs.300 million ($6.6 million). As founder-promoter, Gopinath has 26 per cent, Brindavan Beverages Ltd holds 20 per cent, a non-resident Indian firm 20 per cent, a Japanese investor 20 per cent and other promoters and high net worth individuals hold the balance 14 per cent. "We will deploy the additional funds for expanding our fleet and increasing our flights to new destinations in the north, northeast and Kerala during the next three to four months," Gopinath said. Ceylinco Group of Sri Lanka have already tied up with Air Deccan and are offering connections from India. "The possibility of the airline entering Sri Lanka too is on the cads," a company official said. |
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