GoAir finalises equity partners, plans IPO

Mumbai: Mumbai-based budget carrier GoAir has been approached by Ernst & Young on behalf of its clients for picking up around 28 per cent equity stake in the airline.
The carrier, which is owned and promoted by Jeh Wadia, has been valued at $314-400 million by private equity investors. At 28 per cent, the value of the proposed investment is expected to be $88-112 million.
According to sources close to the deal, in all likelihood, there are three buyers - a global venture capitalist, an Indian corporate and an India-based global private equity investor.
On being asked about the exit mode for the potential investors, the source said, "The airline is planning to get listed next year."
There are some analysts who believe that the airline has been over valued at $400 million, but sources say considering low-cost carrier SpiceJet's valuation of $560 million, GoAir was not over priced.
17/01/08 Manisha Singhal/Business Standard

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Categories: GoAir Jan 2008, New Jan 2008