Air Deccan plans to raise US$100m from stake sale

Bangalore: Air Deccan, India's largest budget airline, plans to raise US$100 million by selling up to 26 percent to a professional investor, Managing Director G.R. Gopinath said on Tuesday.
The company has appointed investment bank Edelweiss Capital to evaluate at least three potential private investors, Gopinath told AFP in Bangalore.
The three-and-a-half-year-old company may sell between 15 percent and 26 percent of itself, he said, and use the US$75 million to US$100 million proceeds to fund expansion.
The Bangalore-based firm is trying to cement its place as the second-largest airline in India's increasingly crowded skies.
Gopinath said his airline which boasts about 22 percent market share would overtake Jet Airways as India's largest carrier in two years "by offering the best low-cost product" and building up infrastructure from hangars to aircraft inventories.
16/05/07 AFP/de/Channel News Asia, Singapore

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Categories: Air Deccan May 2007