Deccan may raise $80-100 million by month end

Deccan Aviation, which operates budget carrier Air Deccan, may close a fresh round of fund-raising by the month-end, which could see the airline placing equity worth $65-100 million (Rs 273-430 crore) with hedge funds and private equity investors like Texas Pacific Group.
A Deccan spokesperson, while confirming that the airline may tie up the funds by the month-end, couldn’t provide more details. Deccan CEO GR Gopinath could not be reached for comments. The airline had mandated investment bankers Edelweiss Capital to raise $65-80 million (Rs 273-344 crore) of fresh capital.
The funds will also be used to buy planes—Deccan is taking delivery of 12 planes in calendar year 2008 (5 Airbus A320, 7 turboprops) and part of the new funds would go in bankrolling these acquisitions.
This would be the third round of funding for Deccan. The airline had raised $100 million (Rs 430 crore) in October from two European lenders by pledging the right to buy 60 Airbus planes it ordered. It has received $60 million, and will receive another $40 million in two instalments in November 2007 and February 2008.
18/04/07 Ranju Sarkar/Hindustan Times

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Categories: Air Deccan Apr 2007