Nacil plans IPO

New Delhi: After asking the government for a Rs 1,000-cr bailout package, the National Aviation Company of India (Nacil) — the newly-formed holding company for Air India and Indian — is planning to tap the market with an initial public offering (IPO) of more than Rs 2,000 to Rs 2,500 crore.
The IPO is expected to hit the market in the first quarter of 2008.
According to sources, two consultants —Accenture and Ambit Finance — appointed to handle the merger, are now estimating the valuation of the total group. They are expected to give their report by the month-end.
“... In the two-phase financial restructuring, we will first give Esops to all our employees and in the second phase, we plan to come out with an IPO,” said a senior Nacil official.
Through the IPO, the company expects to offload 10% stake to fund expansion and take on competition from private airlines. The offer could involve issue of fresh shares and dilution in existing equity of Nacil. According to sources, the exact stake to be offered would be known once they were through with the valuation of the company.
02/12/07 Raja Awasthi/Economic Times

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