Wednesday, January 31, 2007

Air India to tap markets after merger

Air-India`s proposal to tap the capital market has been deferred till the end of 2008 as it has now been decided that the state-run airline would float its IPO only after its merger with Indian, reports agency sources.
The IPO, cleared by Air-India`s board of directors early last year, was planned to part-finance the acquisition of 68 new aircraft. Air-India has now tied up with ABN Amro for funding its aircraft acquisitions that would cost about USD seven billion. It is now availing USD 1.5 billion as the aircraft are being purchased in phases.
As the merger process is likely to take 12-18 months to be completed, the IPO is not expected before end of 2008 at the earliest.
The IPO was earlier slated for the middle of last year but was put off by a few months. Till a few months ago, there were reports it would be floated by end of this fiscal.